EVERYTHING WE BUILD STARTS
WITH A SOLID FOUNDATION.
SUSTAINABILITY REPORT 2008
ENVIRONMENTAL SAVINGS*
The printing of this report employed energy-efficient methods using power from a 100% wind-powered utility provider that saved our environment
approximately 3.8 metric tons of carbon dioxide gasses. In addition, the use of recycled paper saved water and oxygen-producing trees while
reducing the amount of air emissions and new solid waste. Overall, the sustainable printing practices used saved roughly the equivalent of:
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Safety. Integrity. Teamwork. Excellence.
Four simple yet profound words. For
almost a century, they’ve been the
foundation of our success. These
values that have led us in the past are
guiding us into a future that fights
corruption; champions community and
social services; advances and protects
our employees; and takes care of the
environment in which we work.
2
FLUOR SUSTAINABILITY REPORT 2008
FLUOR PRESENTS ITS FIRST ANNUAL
SUSTAINABILITY REPORT.
About the Report.
Fluor is pleased to present its first annual Sustainability Report,
covering the calendar year 2008.
While the company has over the past four years issued reports
focusing on health, safety & environmental activities, this
complete Sustainability Report was developed using the Global
Reporting Initiative’s G3 Sustainability Reporting Guidelines to
promote transparency and accountability. By using this widely
recognized standard of reporting, Fluor will enable its sustainability
performance to be measured and improved annually, while also
making it comparable to those of other corporations.
While written to address the Global Reporting Initiative’s
guidelines, this report also was developed to reflect Fluor’s core
values of Safety, Integrity, Teamwork and Excellence, which
are the foundation of Fluor’s business operations. These values
permeate the company’s strategies and drive the actions of our
global workforce. And while our core values are enduring, we
leverage them to address the world’s evolving sustainability
challenges and opportunities. It is these underlying core values
that have supported Fluor’s success to date and will influence its
sustainability practices for a better tomorrow.
Fluor’s report covers all of its business groups, wholly-owned
subsidiaries and majority-owned joint ventures worldwide and
their material economic, environmental and social impacts.
It was developed for the interest and benefit of Fluor clients,
employees, shareholders, lenders, financial analysts, rating
agencies, suppliers and subcontractors, non-governmental
organizations, media and the communities in which the
company operates.
Materiality of content included in this 2008 Sustainability Report
and its prioritization were assessed and determined by Fluor’s
Sustainability Committee, which has representation from senior
executive management; Compliance & Ethics; Corporate Affairs;
TABLE OF CONTENTS
About the Report
.
.
.
.
.
page 2
About the Company
.
.
.
.
.
page 4
A Message from the CEO
.
.
.
.
page 6
Stakeholder Engagement
.
.
.
.
page 10
Ethics & Compliance
.
.
.
.
.
page 12
Employees & Workplace
.
.
.
.
page 21
Health, Safety & Environmental
.
.
.
page 32
Community & Social Service
.
.
.
.
page 46
Governance
.
.
.
.
.
.
page 54
GRI Index
.
.
.
.
.
.
page 56
GRI Appendix
.
.
.
.
.
.
page 61
FLUOR SUSTAINABILITY REPORT 2008
3
For more information
about Fluor’s global
sustainability efforts
and to share your
thoughts about this
report, please contact:
Corporate Development; Government Relations; Health, Safety & Environmental; Human Resources; Investor
Relations; Law; Project Development & Investments; Public Affairs; and Sales & Strategic Planning.
In this document, Fluor reports on only those G3 indicators that were relevant to its business operations and
measurable in 2008. In the context of Fluor’s carbon footprint, this Sustainability Report represents emissions
produced within the defined boundary and excludes emissions produced at client sites. However, all health,
safety, environmental, economic, stakeholder engagement, governance, human rights, labor practices,
philanthropy and community service data included in this report cover all Fluor employees wherever they work
and all subcontractors for which Fluor is contractually responsible.
This inaugural Sustainability Report has not been audited by a third party. However, Fluor does recognize the
importance of independent external assurance to enhance the credibility of its reports; therefore, the company
will examine options to obtain third-party review of future reports.
Lee Tashjian
Vice President of
Corporate Affairs
Fluor Corporation
6700 Las Colinas Blvd.
Irving, TX 75039
[email protected]
(469) 398-7625
Located off the
northwest coast of
Trinidad in 530 feet of
water, the 4,267-ton
Poinsettia platform is the
largest ever constructed
by local labor and
installed in these waters.
Built for BG Trinidad &
Tobago Ltd., it extracts
natural gas from the
ocean floor and serves
as an excellent source of
clean-burning energy.
4
FLUOR SUSTAINABILITY REPORT 2008
BUILDING OUR FUTURE IS
AN ONGOING PROJECT.
About the Company.
Headquartered in Irving, TX, Fluor Corporation (NYSE: FLR) is
one of the world’s leading and largest publicly traded engineering,
procurement, construction, maintenance and project management
services companies. For nearly 100 years, Fluor employees have
designed, built and maintained many of the world’s most complex
and challenging industrial projects in ways that increase their clients’
competitiveness and long-term business success.
Consistently rated as one of the world’s safest contractors, Fluor’s
primary objective is to develop, execute and maintain capital
projects on schedule, within budget and with operational excellence.
With more than 40 major global offices, the company operates
in more than 60 countries, executing more than 1,000 projects
annually. The company serves clients in the petrochemicals;
oil and gas; commercial and institutional; government; life
sciences; manufacturing; microelectronics; mining; power;
telecommunications; and transportation infrastructure industries.
Fluor has five business groups, which include:
Oil & Gas
Industrial & Infrastructure
Global Services
Power
Government
Fluor’s backlog distribution by region at year end was:
United States
Europe/Africa/Middle East
The Americas
Asia Pacific
Fluor’s market capitalization on December 31, 2008, was $8.1 billion.
For 2008, revenues were $22.3 billion with net earnings of $720.5
million. Cash and marketable securities at December 31, 2008, were
$2.1 billion. Total assets were $6.4 billion, and debt was $151.3
million. Total shareholders’ equity was $2.7 billion. Fluor experienced
no material changes in size and structure during 2008, although some
developments are outlined in the Appendix on page 61.
In 2008, more than 42,000 employees – 28,000 salaried and 14,000
craft/hourly – performed over 87 million hours of work for Fluor’s
global client base. More than 60 percent of these employees are
located in the United States; 20 percent in the Europe, Africa and
Middle East region; and 10 percent each in Asia Pacific and North
and South America (excluding the United States).
FLUOR SUSTAINABILITY REPORT 2008
5
“At its core, Fluor has always been passionate about doing the right thing. Based on these traditions and
commitments, we’ve evolved as a company both in recognizing our role in the world and in the day-to-day
actions we take while pursuing and executing our projects. A core part of our business model is to make
decisions and execute strategies that proactively identify and address relevant sustainability issues and
challenges. Our Sustainability Committee ensures we never lose sight of the importance of our company’s
social, economic and environmental stewardship.”
– Steve Dobbs
Senior Group President, Fluor and Chair,
Fluor Sustainability Committee
Fluor, in joint
partnership with
Airtricity, is designing
and building the world’s
largest offshore wind
farm project off the
coast of the United
Kingdom, which will
provide carbon-neutral,
renewable electricity
for more than 415,000
homes. Wind farms like
the one pictured here,
a completed Airtricity
project, represent
just one facet of our
company’s strategy
to make meaningful
reductions in carbon
emissions and provide
significant amounts
of new, clean and
renewable energy.
6
FLUOR SUSTAINABILITY REPORT 2008
A MESSAGE FROM THE CEO.
Dear Valued Stakeholder,
With more than 42,000 employees working across six continents, we at Fluor Corporation
have the extraordinary opportunity to see and touch many facets of the global community.
Our employees work with governments and the leading corporations of vital industries
to build the world’s largest and most technically challenging projects – projects that fuel
global commerce, stimulate economic development and improve the quality of life for
millions of people around the world.
We have seen firsthand the benefits and challenges of our world’s industrial progress.
While “sustainability” is a relatively new word in the common vocabulary, actively
engaging in issues that impact the world is not a new concept at Fluor. For nearly 100
years, the sustainable practices of our employees have been a natural part of our builder’s
culture and integral to our company’s strategies, daily operations and success. Helping
clients in ways that also serve the greater good is another long-held tradition. Every
day, Fluor helps clients safeguard the environment, conserve energy, protect lives and
strengthen the economies and social structures of the communities where we work globally.
Alan L. Boeckmann
Chairman & Chief Executive Officer
For us, sustainability begins with our core values of Safety, Integrity, Teamwork and Excellence, and for this reason, it is the theme of our
inaugural annual global Sustainability Report – one that mirrors the Global Reporting Initiative’s G3 Sustainability Reporting Guidelines.
These values are prominent throughout our corporate culture and are the starting point for every action of a Fluor employee. They have driven
our superior performance through many decades and serve as the touchstone for all of our sustainability efforts. In the search for excellence
across our operational activities, we never forget that sustainability is an ongoing process of self-examination and improvement. In this report,
I’m pleased to describe the many significant contributions Fluor has made to sustainable endeavors, address the areas where we believe we can
have a greater impact and outline our plans to do so.
Always Looking Toward Tomorrow
We recognize that our efforts so far, as impressive as they may be, are the first strides on a long and continuous road. There’s still much more
to be done. Today’s environment offers as many, if not more, challenges as it does opportunities. As a global community, we need to increase
sustainable construction efforts; improve energy efficiency and develop more alternative energy sources; mitigate environmental damage and
address climate change; conserve and sustain the use of renewable natural resources to ensure regenerative capacity; reduce waste and increase
recycling; improve human rights issues; increase the security of our resources (energy, food, water); develop technologies to solve problems;
improve safety; reduce foreseeable risks; and restore endangered environments. And we need to do all this at a time when economies around
the world are suffering from the worst financial and credit crises seen in eight decades. While our corporate responsibility efforts over the
past several decades have required considerable investments, we believe they have also had a favorable net impact on operating costs and
productivity. They not only benefit our stakeholders and the public at large but help us identify risks and new areas for business. For these
reasons and many others, we remain wholly committed to maintaining these efforts on an ongoing basis.
Today, we are operating in a global context that has increased our interdependence and need for collaboration. Developing countries require power
to raise standards of living; cities need to provide infrastructure that will enhance quality of life; and the demand for cleaner, more efficient fuels
has never been greater. The challenges of sustainable development are many, and companies like Fluor have not only a responsibility but also a
great ability to exert positive change on such conditions. We often go beyond legal requirements and traditional practices to do business in socially,
economically and environmentally responsible ways. Our focus on sustainability drives our decisions and is the foundation upon which we operate.
FLUOR SUSTAINABILITY REPORT 2008
“FOR NEARLY 100 YEARS, THE SUSTAINABLE PRACTICES
OF OUR EMPLOYEES HAVE BEEN A NATURAL PART OF OUR
BUILDER’S CULTURE.”
In 2009, we will raise the bar even higher on our goals, expectations and performance to support the global economy’s critical need
for commercial growth and success, while also continuing to honor our ethical values and respect for people, support for communities
and protection of the natural environment. I invite you to read this Sustainability Report, to learn how Fluor has significantly
contributed to economic advancement in ways that protect and sustain future generations, and to hold us to a higher level of
excellence in all of our operations.
I spend a considerable amount of time with our clients around the world and with non-governmental organizations like Transparency
International and the World Economic Forum, which – like me – believe that change is possible. Each and every day, we at Fluor will
strive to set a benchmark for excellence in our business and project operations and to serve as a model of corporate citizenship and
sustainability for other companies to emulate. We will continue to judiciously manage our business operations to safeguard Fluor’s
reputation and to retain the respect of all those associated with us.
In the end, it all comes down to commitment, perseverance and leadership. Our commitment to a sustainable future is deeply embedded
in our long-standing company values of Safety, Integrity, Teamwork and Excellence, as well as in our Code of Conduct. As builders of the
world’s infrastructure, the employees of Fluor know the importance of the work they do. Beginning with me and extending to every
employee in Fluor, we are leveraging our strengths and practicing sustainability in all aspects of our work. We are proud of our dedication
to sustainability and look forward to even greater achievements in 2009.
By practicing our values and having straight dialogue every day about our impact, we step closer to the goal of a better future we all hope to
achieve in this journey we collectively share.
Sincerely,
Alan L. Boeckmann
Chairman & Chief Executive Officer
7
8
FLUOR SUSTAINABILITY REPORT 2008
2008 HIGHLIGHTS
Fluor is proud of its work in 2008 and well positioned to further strengthen our performance across a variety of economic, environmental
and social arenas in 2009. This is due, in part, to the company’s unprecedented financial success in 2008 and its continued advancement of
technologies and operating practices that better protect human and physical assets. Over the past year, our company has made significant
strides across several areas.
Winning several key project awards for responsible energy:
t The Fluor-led $4 billion environmental management, operations and remediation partnership for the Department of Energy’s
Savannah River Nuclear Site in South Carolina.
t The $1.8 billion design and construction contract for the world’s largest offshore wind farm project off the coast of the United
Kingdom, which will provide carbon-neutral, renewable electricity for more than 415,000 homes.
t The formation of a strategic partnership with E.ON Energie AG for the development of a retrofitted pilot plant in Germany,
using Fluor’s proprietary and commercially proven Econamine FG+SM carbon capture technology, which creates a secure,
affordable and dependable low-carbon power generation solution using coal as a fuel source.
t The expansion and retrofit of several U.S. refineries for Marathon Oil and Total to increase the production of lower-emission
transportation fuels.
t The contract to develop Renewable Energy Corporation’s new solar panel manufacturing complex in Singapore, which will
produce wafers, cells and modules for the growing solar value chain market.
t The installation of state-of-the-art nitrogen oxide emission controls at Luminant’s Sandow Power Plant in Texas to
improve air quality.
t The $1 billion engineering, procurement and construction contract to build USEC’s American Centrifuge Plant in Ohio,
which will assist our client in providing dependable, long-term U.S.-owned nuclear fuel production capacity needed to
support the country’s existing nuclear plants, as well as those expected to be built in the future.
As well as achieving other significant milestones that are equally valuable to us:
t Being named one of the World’s Most Ethical Companies by Ethisphere Magazine.
t Earning the #1 position in the engineering & construction category on FORTUNE magazine’s World’s Most Admired
Companies listing.
t Being selected in the top 10 Most Trustworthy Companies in America by Forbes magazine.
t Receiving the Energy and Environmental Excellence Award, which honors significant contributions made toward meeting
global energy challenges through innovation and technology, given by Hart Energy Publishing.
t Being selected by the Occupational Safety and Health Administration as one of only seven U.S. companies to participate
in its Voluntary Protection Program’s Corporate Pilot that recognizes companies for their strong commitment to
employee health and safety.
t Earning several nuclear certificates of accreditation and authorization from the American Society of Mechanical Engineers
to develop safe nuclear projects that produce clean energy.
t Establishing a Sustainability Committee, with representation from the highest levels of the company, to actively manage
Fluor’s endeavors in economic, social and environmental areas.
t Assessing Fluor’s carbon footprint, a critical building block of our climate-change strategy, with data collected from our
offices in more than 25 countries.
t Supporting efforts in our offices and at project sites worldwide to increase energy efficiency and implement waste-management
and recycling programs.
t Supporting the continued growth of the Partnering Against Corruption Initiative, the only business-driven, multi-industry
anti-corruption effort worldwide – one of many that Fluor is involved in with the World Economic Forum.
t Contributing $138 million to organizations around the globe through the Fluor Foundation and corporate resources, since
the establishment of the Foundation in 1952.
FLUOR SUSTAINABILITY REPORT 2008
9
TS Power Plant in
Nevada is an excellent
example of the
future of the modern
pulverized coal plant
design. Fluor completed
the engineering,
procurement and
construction of the
242-megawatt project
during 2008, delivering
an innovative design and
world-class technology
within budget, ahead
of schedule and with a
stellar safety record of
3 million hours without
a lost-time accident.
“WE NEVER FORGET THAT SUSTAINABILITY IS AN ONGOING
PROCESS OF SELFEXAMINATION AND IMPROVEMENT.”
10 FLUOR SUSTAINABILITY REPORT 2008
WE’RE ALL IN IT
TOGETHER.
Stakeholder Engagement.
Earning the trust of our stakeholders is a priority at Fluor. Supporting and collaborating with our stakeholders increases the company’s
opportunities for success. We take a proactive approach to fully understand our stakeholders’ needs and determine how we can apply our
expertise to meet them. Gaining this kind of knowledge and insight calls for genuine dialogue, active listening and open-minded inquiry,
not only at the beginning of a stakeholder relationship but on an ongoing basis.
Developing engagement plans for varying stakeholder groups that are most impacted by Fluor’s global operations is the responsibility
of respective business and functional leaders within the company. Engagement with stakeholders is a point of discussion during senior
management meetings.
Fluor engages with its stakeholders in a variety of frequent formal and informal contexts, all carried out to promote an active exchange
of information and viewpoints.
In the execution of our clients’ projects, we work closely with them, often times as more than just their contractor but as business partners,
to ensure the best project outcomes. At the end of projects, we conduct formal client review surveys to assess their perception of our
performance and quality and identify ways to improve our service offering and their customer satisfaction. Similar surveys and methods
of communication are also conducted among subcontractors and suppliers.
Likewise, the company places a high priority on continual and candid communication with its global workforce. This is achieved through
a variety of media, including electronic (intranet and email), face-to-face meetings and, of course, day-to-day interactions. Supervisors are
periodically provided with communication toolkits to help facilitate and guide their discussions with employees on important matters within
the company. While many of these activities provide opportunities for two-way dialogue, the company also obtains feedback on employees’
perceptions through a comprehensive Employee Engagement Survey, which is conducted every few years.
Communication also occurs on a regular basis with the company’s shareholders and other members of the financial community. This involves
quarterly conference calls to review earnings performance; presentations at analyst conferences; meetings with bankers, rating agencies and
financial analysts throughout the course of the year; and an ongoing dialogue telephonically.
At the inception of and throughout the life of a construction project, the company customarily takes an active approach to engagement with
community stakeholders. The purpose of this is to listen to their concerns, understand what our impacts are and what matters most to them
and ultimately involve them in the decision making of the project’s execution plan. Such communication takes place in a variety of ways,
such as meetings with community leaders, advisory panels and community panels as well as town hall events with the public, focus groups,
newsletters and other ways. We also take a lead role in investing our resources to ensure local economic development and social benefits to the
community.
Other endeavors include a robust and timely website, www.fluor.com, to communicate with the public at large, as well as employee
involvement in a variety of societal institutions, including the World Economic Forum, Transparency International, Basel Institute on
Governance and World Bank; community organizations, including United Way; and industry associations, such as the American Petroleum
Institute. All of the engagement efforts described above are long-standing and have been proven successful.
Because of Fluor’s active and ongoing engagement with its stakeholders, the company is able to proactively address issues and achieve positive
outcomes across its global operations that benefit these constituencies. While there are many efforts that have resulted from our stakeholder
engagement, four examples of activities from 2008 are detailed on page 11.
FLUOR SUSTAINABILITY REPORT 2008
Clients
Shareholders
Through our formal client review surveys and ongoing dialogue,
Fluor has advanced its efforts to address the increasing challenges
being faced by businesses today. The credit and financial crises
that unfolded in the second half of 2008 have put increasing
pressure on clients to lower their operating costs and identify greater
efficiencies throughout their capital programs. We continue to
introduce new technologies to our clients that make their projects
and facilities more cost competitive. Our employees are encouraged
to be innovative and bring ideas forward to save our clients money
through structured Value Awareness Programs. For example, in
2008 we helped a major industrial client realize significant savings by
recommending new work processes for the more efficient operation
of boilers and chillers in its plant. This is just one of many examples
in which Fluor is engaging with its clients and responding to make
them more competitive and successful in their markets.
During 2008, based on frequent dialogue with shareholders, our
Investor Relations department continued to provide additional
enhancements to serve their needs, including the development of a
spreadsheet with current and historical financial information and
supplemental slides for the quarterly earnings conference calls. In
addition, the company began implementation of Notice & Access,
a program that allows us to reduce the printed quantity of annual
reports and proxy statements by directing the shareholder to view
the materials and vote online.
Employees
Based on feedback from Fluor’s global Employee Engagement Survey,
teams were assigned to make changes that would raise employee
engagement ratings across multiple dimensions (corporate, business
groups, functions, locations, field staff, etc.). At the corporate level,
four teams worked to develop a four-day Fluor Leadership Summit
to enhance employees’ leadership skills and business acumen; to
design and implement a new, globally consistent Performance
Appraisal System; to produce a modified framework for Global
Functional Tracks, which incorporated more than 50 improvement
suggestions; and to upgrade technology and enhance design of
the company’s electronic employee communications systems.
Furthermore and equally important, the company also made
considerable investments last year to increase its training offerings
through a new and comprehensive program called Fluor University.
11
Communities
In locations where Fluor establishes a major professional presence
for the purpose of serving its clients, the company also establishes
a relationship with local leaders in order to have a valuable impact
on the lives of people in those communities. A good example of
this is found in the rural communities of northwest England, the
location of a nuclear decommissioning site. Fluor’s Community
Relations leaders met with community representatives to assess the
best ways in which the company could support the local community.
Learning that the Cumbria Community Foundation is the leading
grant-making organization in the region knowledgeable of local
needs, Fluor launched an annual Fluor Cumbria Fund managed
by the Foundation. Fluor’s donations aided many social service
organizations as well as youth and educational programs in the local
coastal towns. Fluor introduced our “Building Futures” project at
three schools, providing 500 rucksacks filled with school supplies
and rain jackets and boots to the students. The first two years we
were in the community, Fluor also put its support into the Great
North Air Ambulance after learning that the nearest large trauma
center for people in this region is a 2½-hour drive away. Known
locally as the Pride of Cumbria, the operation flies approximately
200 missions every six months, bringing life-saving support in 20
minutes to injured hikers, boaters and automobile accident victims.
12 FLUOR SUSTAINABILITY REPORT 2008
WE’VE BUILT POWER PLANTS,
BRIDGES, REFINERIES
AND A SPOTLESS REPUTATION.
Ethics & Compliance:
A Clear Business Imperative.
Of the many public policy issues impacting global corporations
today, few affect Fluor and its operations more profoundly than
that of corruption. With projects and operations in more than
60 countries spanning six continents, we confront the devastating
impact of bribery and corruption on an almost daily basis.
Respected institutions such as the World Bank have estimated
that the total volume of bribes paid annually among all
industries is well over $1 trillion, more than 5 percent of the
global GDP. More recently, a study among CEOs conducted by
PricewaterhouseCoopers LLC found that 45 percent of respondents
had not entered a market or pursued a specific opportunity because
of corruption risks. Moreover, four in 10 reported losing a bid
because of corrupt officials, and that competitors had paid bribes.
Transparency International has identified the global construction
industry as one of the world’s most corrupt. Clearly, corruption is
an issue for many companies but, in particular, a significant issue for
engineering and construction firms worldwide.
Whether losing competitions for projects to those who utilize
bribery as a business strategy, or paying a small amount to
get something through Customs, we believe it is not only
possible to address such activities, but that it has become a
business imperative to do so. The need for a level playing field,
particularly in our industry, has never been greater.
“Through my travels representing Fluor, I’ve seen
firsthand how corruption, particularly in developing countries,
hurts companies, countries and their citizens. Monies squandered
in such illegitimate payoffs are funds diverted from much-needed
public projects, resulting in roads not built, dams not erected and
schools and hospitals not constructed. While much has been done
by governments and NGOs to fight corruption, global business
must get involved. I believe we have a real opportunity to make a
meaningful and positive impact.”
– David Seaton
Senior Group President, Fluor
To this end, we have chosen to pursue two key strategies.
First, we believe strongly in the notion of collective action where
principled companies join together in the common purpose
of taking a stand against corruption. Second, we are firmly
committed to building upon our culture of ethics underpinned
by our core value of Integrity, a value that has been at the center
of how we do business throughout our history.
The Power of Collective Action
Fluor believes that taking collective action has substantial
benefits. Among them, collective action helps create a level
playing field; improves public trust in business; influences
future laws and regulations; and decreases the likelihood of
future bribe demand. Moreover, the money formerly paid as
bribes or used to conduct investigations can instead be invested
into infrastructure improvements.
At the 2003 annual meeting of the World Economic Forum in
Davos, Switzerland, Fluor Chairman and CEO Alan Boeckmann
urged counterparts in the engineering and construction sector
to develop and adopt a set of anti-corruption principles for the
purpose of helping to eradicate bribery. Over the next year,
Boeckmann chaired an effort that was facilitated by senior
officials of Transparency International and the Basel Institute
on Governance with the goal of developing a set of principles
that could be introduced and embraced at the Forum’s 2004
meeting in Davos.
The principles introduced that year covered the full spectrum
of supply-side corruption issues from political contributions
to facilitating payments. Adoption requires a CEO signature
confirming the company’s commitment to a zero-tolerance
approach toward corruption, as well as agreement to implement
a company-wide anti-corruption program that meets the agreedupon principles. Starting with 19 signatory companies, the
effort has expanded within the Forum to include a number of
industries with more than 140 signatory companies, including
such firms as The Coca-Cola Corp., Merck & Co. Inc., Microsoft
Corp., Royal Dutch Shell plc and Duke Energy Corp. Now
known as the Partnering Against Corruption Initiative (PACI), it
has become the world’s foremost private sector initiative focused
on the supply side of the global anti-corruption movement. It
routinely cooperates and coordinates programs and activities
with Transparency International, the International Chamber of
Commerce, and the U.N. Global Compact.
In addition to PACI, Fluor is a founding member of the Business
Ethics Leadership Alliance. Through this alliance, we will be
working with others to establish The Global Ethics Pact, an effort
designed for companies across all industries for the purpose
of improving business ethics.
FLUOR SUSTAINABILITY REPORT 2008
13
Fluor is building a worldclass polysilicon facility
in China for LDK Solar,
which is expected to
produce 15,000 metric
tons of high-purity
polysilicon annually
for photovoltaic solar
panels that will harness
the sun’s energy and
reduce dependence
on other conventional
energy sources.
14 FLUOR SUSTAINABILITY REPORT 2008
“This is an issue we’re absolutely passionate about.
Corruption has a corrosive impact on market opportunities and
the general business climate. It deters investment, curbs economic
growth and sustainable development, distorts prices and
undermines legal and judicial systems. Regrettably, this situation
is endemic in many areas of the world. It is our responsibility and
obligation to our stakeholders and the global community to do
what we can to mitigate this challenge.”
– Alan L. Boeckmann
Chairman & CEO, Fluor
Fluor firmly believes that these forms of collective action, together
with governmental action, are making a difference in turning the
tide of global bribery and corruption in a more favorable direction.
A Culture of Ethics
In a recent survey of global clients, “ethical” was one of three terms
cited most frequently as being associated with Fluor. To us, this is not
surprising. Throughout our history we have made ethical conduct
a priority. We believe this is largely due to the fact that Integrity
has been one of the company’s four enduring values. Setting the
right tone has yielded policies and practices that clearly define what
is expected of all Fluor employees. And throughout these many
years, these policies and practices have been continually revised and
strengthened through the company’s improvement processes. Today,
we like where we are. But we know that in the future, our programs
and practices will be even better…as they should be.
Our Standards, Monitoring & Reporting
Fluor’s anti-corruption program is extensive. While our employees
are especially vigilant when dealing with public sector officials,
Fluor prohibits all forms of commercial bribery as well. This allows
for clear standards that employees can easily understand no matter
what the business environment or context may be.
While we strongly discourage the use of facilitating payments, we
do permit them if they are allowed under local country laws and
preapproved by the company’s Law Department. If a facilitating
payment is made, it is specifically accounted for as outlined in
the PACI Principles. We continuously reevaluate our ledger of
facilitating payments to confirm compliance and to determine how
they can be reduced going forward.
Fluor also limits the number of third-party agents by relying
primarily on our internal sales staff. We do not have a commissionbased sales structure, which contributes greatly to the management
of corruption risks. If local laws require the use of a third party,
we perform thorough due diligence and training and are vigilant
in looking for “red flags.” We also limit the employees who are
permitted to have contact with third-party agents.
Fluor incorporates anti-corruption along with a range of other ethics
and compliance standards into our risk management program. For
both Fluor and its clients, the task of managing risk begins when
the project is still a prospect. Risk takes on a variety of forms, from
country, site-specific, contract, financial, political and regulatory, to
technology, schedule, plant performance guarantees and partners/
subcontractors. In addition, currency, corruption, legal systems and
human resource risks are considered as well. Our best approach
is to seek out the root causes of what can go wrong during project
execution and subsequently identify risk mitigation strategies.
Fluor’s Business Risk Management Framework is a formalized and
systematic process for assessing, managing and monitoring business
risks for every project we consider or execute. Before we begin pursuit
of new project opportunities, we employ this framework to assess a
project’s potential risks and profitability. “Bid/No Bid” decisions on
contract pursuits are made based on the analysis of a project’s profile.
This evaluation contains many questions focused on corruption,
such as: What is the location of the project? What is the business
culture? And, what third parties are locally required? Additionally,
Fluor’s Internal Audit team reviews our adherence to anti-corruption
standards through its regular and special audits throughout the world.
Compliance & Ethics: Our Approach
Research continues to show that if the ethical climate in companies
decreases, observed misconduct increases. The costs associated with
compliance failures have never been greater, with increased costs
of regulatory fines and lawsuits, decreased stock value, impaired
reputations and distracted management. However, a strong
compliance and ethics program increases a company’s ethical
culture and reduces ethical risks, which, in turn, mitigates legal,
financial and reputational risk and generally improves corporate risk
management; protects the value of the corporate brand and customer
goodwill; increases employee morale, productivity and retention;
reduces cost of capital while potentially increasing shareholder value;
and creates the foundation for long-term corporate sustainability.
FLUOR SUSTAINABILITY REPORT 2008
Our Code & Expectations
Fluor works to ensure that all employees have the
tools and resources they need to maintain the highest
ethical standards. Our Code of Business Conduct
and Ethics is the centerpiece of our commitment
to conduct business with the highest standards of
integrity. Fluor provides company-wide training on
our Code, with special emphasis on certain key risk
areas such as anti-corruption, conflicts of interest
and insider trading. At the end of 2008, more than
26,000 employees had been trained on our Code.
We also provide other training depending on the
applicable risks and affected employees. For example,
in 2008, approximately 400 sales and marketing,
project management, field operations, procurement
and other employees received live anti-corruption
training. To date, a total of approximately 1,900
employees in 26 offices in 16 countries have received
this training since the program’s inception in 2007.
15
Additionally, we have a company-wide annual Ethics
Certification program. All salaried employees must
certify that they understand and accept the Code and
are provided this additional medium to disclose any
integrity concerns or potential conflicts of interest.
Reporting
Fluor values open and transparent communication.
Our management constantly reinforces our responsibility
“to do the right thing.” Management’s messages are not
necessarily scripted as part of our program, but simply
reflect how we run our company.
When concerns about integrity arise, we encourage
employees to go to their managers, supervisors or local
Human Resources managers. If concerns are still not
resolved, they can go to an expert in Corporate Security,
Human Resources, Law, Internal Audit, Health, Safety
& Environmental or Corporate Compliance. If their
integrity concerns are still not resolved, or they do not
Fluor provides online
company-wide training
and certification on
our Code, with special
emphasis on certain key
risk areas such as anticorruption, conflicts
of interest and insider
trading.
16 FLUOR SUSTAINABILITY REPORT 2008
feel comfortable discussing them with anyone within
the company, they can anonymously call the Fluor
Compliance and Ethics Hotline, which is operated by an
independent third party. Employees can anonymously
make reports or ask questions in more than 150
languages, seven days a week, 24 hours a day. Fluor
strictly prohibits retaliation against anyone who makes a
good faith report.
RECOGNITION AND
AWARDS
In 2008, the Compliance and Ethics Hotline received
306 calls, all of which were investigated. Reports
to our Hotline have increased since we expanded
our Compliance and Ethics program. We want our
employees and other stakeholders to raise concerns
and ask questions. During 2009, we will roll out
a Speaking Up campaign to further emphasize the
importance of raising compliance and ethics concerns
and questions and, as a result, we expect a further
increase in reports and questions in 2009. We are
also adding new Hotline web solutions and additional
toll-free numbers for countries where we maintain our
largest presence.
2008 Hotline Reports by Category
HR/ER Issues
Health/Safety/Environmental
Substance Abuse
Theft/Bribes/Kickbacks
Conflict of Interest
Financial/Internal Controls
Miscellaneous
Request for Guidance
t “World’s Most
Ethical Companies”
recognition by
Ethisphere Institute.
Fluor was the only
engineering &
construction company
named on the
recognition list.
t Government
Contractor Ethics
Program 2008
Rankings by
Ethisphere Institute:
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t Ranked Number 9 on
Forbes magazine’s
list of America’s
Most Trustworthy
Companies.
t One of America’s and
the world’s “Most
Admired Companies”
by FORTUNE magazine.
Fluor captured the
number-one spot
on the global list in
the engineering and
construction category
in 2008 and came in
third in the America
listing.
FLUOR SUSTAINABILITY REPORT 2008
17
GETTING THINGS RIGHT.
Procurement Policy.
The increasing global emphasis on sustainability influences the way Fluor makes procurement decisions. The terms and conditions of our
procurement contracts require our suppliers and contractors to adhere to the local laws and regulations of the countries where they are working
for us. In addition, our suppliers and contractors must also adhere to the specific requirements of Fluor policies and procedures on safety,
health and the environment, as well as our Code of Business Conduct and Ethics.
The company’s Code also supports our commitment to human rights. We hold ourselves accountable to our corporate expectations on
compliance practices, and we require that subcontractors, workers, consultants, agents, suppliers and other third parties observe similar
standards and act in a manner consistent with the Code and adhere to all applicable laws. These parties are subject to audit to determine
compliance with contract terms and conditions.
Fluor plans to implement our Expectations of Business Conduct and Ethics for Suppliers and Contractors during 2009. These expectations
will supplement the various contractual requirements that our suppliers and contractors must undertake, to further emphasize the high
integrity standards we expect.
Influencing Sustainability Through the Supply Chain
Increasingly, our procurement experts look for innovative approaches to secure goods and services in remote locations.
In countries around the world, Fluor supports local communities by actively sourcing goods and services from local businesses. With Fluor’s
global spending for goods and services reaching almost $14 billion in 2008 (more than $52 million for each working day), our opportunity to
engage small, woman-owned and diverse suppliers whose goods and services meet our clients’ requirements is substantial. This considerable
procurement leverage also allows us to influence our suppliers’ fulfillment of social, legal and ethical responsibilities. Furthermore, we
complete evaluations for safety, compliance, quality, environmental and anti-bribery performance on all suppliers and subcontractors with
whom we contract over $500,000 of business.
Fluor’s supplier outreach tool, SCORE!SM (Supplier and Contractor Online Registry E-version), is a vital resource for identifying and engaging
suppliers globally. To support supplier sustainability, Fluor is strongly committed to extending opportunities to grow businesses through
a proactive U.S. Supplier Diversity Program. In 2008, this program achieved a spend level of $458 million with small, woman-owned and
diverse suppliers, or approximately 10 percent of the $4.7 billion spent with U.S.-based suppliers and contractors last year. By using these
businesses, Fluor creates employment opportunities for many in the local communities.
Fluor is a corporate member of the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise
National Council (WBENC), and actively participates in many of their affiliated regional councils. In 2008, Fluor supported regional
councils of both NMSDC and WBENC and, with our corporate sponsorships of events, has helped increase the growth of small, diverse
and woman-owned business enterprises. Fluor was recognized as a Sustaining Member of the Women’s Business Council Southwest with
representation on its Board of Directors. Fluor also supports the Dallas/Fort Worth (TX) Minority Business Council, the Houston Minority
Business Council and the Women’s Enterprise Alliance Council by serving on corporate committees and contributing to scholarships and
business events targeting diverse and woman-owned business enterprises.
18 FLUOR SUSTAINABILITY REPORT 2008
WE’RE FIGHTING CORRUPTION
WITH A SCRIPT,
ACTORS AND A CAMERA.
Anti-Corruption Education and Training Initiative.
On a dusty rural road, a field engineer charged with delivering heavy equipment to a construction site is stymied when road workers reverse
a “one way” sign and demand compensation for allowing the equipment to pass. What should she do?
The field engineer, in this case, is a professional actor, as are her adversaries. But the situation is based on one that actually occurred, and
the question posed by her predicament is one faced by countless employees in the engineering and construction industry every day. Her
quandary, and her solution, are among many featured in a new film and accompanying training materials, which are core elements of the
Anti-Corruption Education and Training (ACET) initiative, funded in part by a leadership grant from Fluor. The film, titled “Ethicana,”
spotlights actual ethical dilemmas woven into a fictional story set on a mythical island and forms the foundation for substantive discussions
around a very serious industry problem with devastating implications.
“Each year billions of dollars are lost through bribery and corruption,” says the American Society of Civil Engineers’ (ASCE) Michael Sanio,
project manager for the ACET initiative. “Bribery and corruption
compromise projects and put the public at risk. And they happen
all over the world.”
That’s why Fluor agreed not only to donate $100,000 for the creation
of training and education materials but also to endorse the industrywide initiative and provide its corporate headquarters as an on-site
location for filming a scene in “Ethicana.” Subtitled in 27 languages,
the film will be combined with a discussion guide and other materials
and distributed free of charge to supporting corporations, engineering
schools and professional organizations. Additional copies will be
available for purchase by companies, governmental bodies and others
interested in and affected by this issue.
At the national ASCE Convention in November 2008, a group of
50 industry professionals previewed the film and participated in a
moderated discussion afterward.
Scenes from the fictional
film “Ethicana.”
FLUOR SUSTAINABILITY REPORT 2008 19
“ETHICANA” SPOTLIGHTS ETHICAL DILEMMAS ENCOUNTERED
ON ENGINEERING & CONSTRUCTION PROJECTS AND FORMS THE
FOUNDATION FOR SUBSTANTIVE DISCUSSIONS AROUND A VERY
SERIOUS INDUSTRY PROBLEM WITH DEVASTATING IMPLICATIONS.
“When viewers expressed opinions in that discussion, it became clear they didn’t really know or understand the types and magnitude
of corruption going on,” says Bob Crist, chair of ASCE’s Global Principles of Professional Conduct Committee. “Unethical behavior
can be so subtle sometimes,” Crist continues, “and everyone in the system, from lawyers to field engineers to government officials
to administrative assistants, can be involved. Awareness is our biggest problem; even individuals with the best intentions can make
decisions that lead them down the wrong road. Previous training materials on ethics have focused on corporations. With ‘Ethicana,’
we are focused on the entire spectrum and especially on individuals.”
Fluor’s donations, combined with those of several other organizations and individuals, have created more than concrete materials. They have
sparked the proverbial “ah ha!” moment for many in the preview audience. “The comment I heard from viewers was, ‘I now understand
what’s going on and I didn’t before.’ That’s the first step toward needed change in our industry.”
20 FLUOR SUSTAINABILITY REPORT 2008
ETHICS IN ACTION.
The BlackBerry vibrated across the desk as it always does when a new message arrives, but there was nothing
common about this message. It contained an offer that would tempt and derail the integrity of many.
Working for Fluor for less than a year, this employee had heard about conflict-of-interest situations that
procurement personnel in the engineering and construction industry frequently face. But when he read the offer
being made by a senior manager of a major product supplier abroad, it became clear to him that ethics is indeed
the commodity in jeopardy these days.
The offer was the equivalent of a winning lottery ticket and was simple in design. All the Fluor employee had to
do was ensure the manager’s company was awarded a purchase order regardless of Fluor’s competitive-bidding
process. In exchange, the supplier would pay the employee 2 percent of the purchase order’s gross value, which
amounted to several million dollars.
Fluor’s Procurement employee recognized immediately that accepting this bribe was wrong. He had taken web-based
training on Fluor’s Code of Business Conduct and Ethics and the specially designed live course on anti-corruption.
What he learned guided his decision. “I knew that no matter how tempting the money was,” he said, “the fight against
bribery and its damaging effects on society must be won. Reporting this offer was simply the right thing to do.”
His decisive response to the attempted bribery led to the supplier being put on a probationary status with regard
to doing future business with Fluor and disciplinary action for the supplier’s senior manager who made the offer.
In addition, after notification, Fluor’s client for the project agreed that the situation was managed appropriately
and thanked Fluor for its professionalism and proactive commitment to ethics.
And as for the Fluor employee who was offered the bribe, he received commendation for his integrity from the
company’s most senior leaders. Not only did he keep himself and the company out of trouble, he had set a true
example for others to emulate.
The employees and vendor involved in this actual case study have intentionally not been disclosed.
FLUOR SUSTAINABILITY REPORT 2008
21
OF THE BILLIONS OF ASSETS FLUOR HAS,
OUR PEOPLE ARE THE MOST VALUED.
Employees & Workplace.
Our People
Across six continents, Fluor’s 42,000 employees design,
build and maintain complex industrial facilities
and solve problems ranging from the routine to the
extraordinary. Over the past century, our employees
have been instrumental in developing the tools and
systems used today to execute these challenging
projects safely, smartly and with the highest quality.
Fluor employees are skilled, dedicated people diligently
working to achieve excellence for our clients. They are the
key drivers of Fluor’s record-setting 2008 performance.
Building a World-Class Workplace
Recruiting and retaining people with relevant skills
continued as a thematic challenge for Fluor, which,
like all companies in the engineering and construction
industry, faced ongoing labor shortages. Ensuring the
constant availability of pools of talent with the necessary
abilities and experience needed to successfully lead at
higher, more responsible levels within the organization
was the focus of Fluor’s succession planning.
People desire careers at Fluor because our employees
work on some of the world’s biggest and most
distinctive projects. In 2008, we added more than
2,100 new salaried employees to our overall workforce.
And, in response to a trend of record backlog and
record new awards, we have added 10,000 salaried
employees over the past three years. Even so, we have
a good balance of new and tenured employees. A large
number of employees have 10 or more years of service,
a demonstration of who we are and a testament to
employee satisfaction with the work environment and
opportunities provided within the company.
Recruitment
Fluor maintains long-term strategic relationships
with select universities and technical colleges around
the world. Executive sponsors from Fluor oversee
and nurture these relationships by supporting the
institution and academic community through
teaching courses, serving as members of college
advisory boards, providing students with real-world
experience through internships and coaching students
on specific career-related skills. These efforts work
in conjunction with the Fluor Foundation, which
provides grants to fund university engineering,
construction and procurement programs, as well as
student scholarships, associations and career centers.
Around the world, strategies are in place to source
diverse pools of talent. In the United States, that
includes attending minority-focused national
technical conferences. In 2008, those conferences
were the Black Engineer of the Year, the
National Society of Black Engineers, the Society
of Women Engineers, the Society of Hispanic
Professional Engineers, the American Indian Science
and Engineering Society, and the Asian American
Engineer of the Year.
Successful Onboarding Is Key to Retention
The large number of new hires and the desire for a
globally consistent execution platform led to Fluor’s
global Onboarding Program, which includes new hire
processing; “buddy” assignments; specific courses in
health, safety & environmental; ethics and execution;
diversity and inclusion; and a detailed functional
onboarding curriculum with a prescribed supervisor
and functional leadership meetings.
New college graduates who come to work at Fluor
are supported during their first years through the
Graduates Advancing to ProfessionalismSM program,
a management-sponsored global network that serves
to facilitate the transition from academic life to
their careers at Fluor through social networking,
community philanthropy, access to senior executives
and career guidance in order to increase employees’
knowledge of the company.
Because Fluor’s business is global and requires
mobility, in 2008 we redesigned our International
Assignment Policy to promote employee mobility,
simplify assignment administration and foster a “one
team” approach at project sites. The policy changes
responded to demographic trends in the workforce,
changing attitudes toward relocation and the need for
KEY 2008
FOCUS AREAS
t
t
t
t
Recruiting
Retention
Diversity & Inclusion
Talent Development
22 FLUOR SUSTAINABILITY REPORT 2008
Employee Composition over Past Five Years
27,958
2008
15,418
15,482
22,078
2006
2005
17,795
17,041
2004
17,344
17,455
0
10,000
Salaried
Fluor’s employees have the opportunity to truly see and experience
the world by taking on international assignments and working at
our offices and project sites across six continents. In fact, more than
2,000 of our employees are currently on international assignments in
46 countries – a bona fide reflection of our workforce’s mobility and
commitment to serving our clients around the world.
14,161
25,842
2007
a global, rather than U.S.-centric, approach.
20,000
30,000
Planning a Successful Future
40,000
50,000
Craft
Employee Composition (by Business Group) for 2008
The following table sets forth the number of employees of Fluor and its
subsidiaries engaged in our business segments as of December 31, 2008:
Salaried Employees:
Oil & Gas
13,961
Industrial & Infrastructure
3,285
Government
2,175
Global Services
4,081
Power
793
Other
3,663
Total Salaried
27,958
Craft and Hourly Employees 14,161
Total
42,119
The number of craft and hourly employees, who provide support
throughout the various business segments, varies in relation to the
number and size of projects we have in process at any particular time.
A successful future depends greatly upon building a cadre of capable
leaders by employing a planned, thoughtfully managed succession
process. Our company has been engaged in leadership development
for decades, using a network of forums and management participation
that has not fundamentally changed in 30 years. It is, therefore,
embedded within our operating process and culture, and a natural
extension of what we do every day. Fluor’s approach consists of several
interwoven and coordinated elements designed to identify individuals
with high leadership potential for our succession talent pools and to
support the development needs of future Fluor leaders.
We have specific programs that are designed to accelerate the
development of leadership skills and competencies for both general
and project management career paths. These programs have been
very successful in providing the company with a pool of vetted,
qualified leaders. This helps support our succession strategy and
establishes cross-generational role models.
We also maintain a continuous focus on developing globally diverse
leaders and monitoring retirement and turnover trends to ensure we
are developing leaders today to meet the needs of tomorrow.
Employee and Talent Development
Among our efforts to help employees maximize their performance and
potential, in 2008 we launched an even more robust career development
process and a toolkit that highlights development opportunities and
resources. Among the tools are Functional Development Frameworks
that outline specific courses, experiences and competencies required
for advancement in all functional levels of the company – from
engineering, estimating, project controls and project management to
finance, management/leadership, human resources and information
technology. Whether an employee is interested in excelling and
advancing in his or her own field or pursuing another career path at
Fluor, our Frameworks, Job Descriptions and Career Development
Guides provide a starting point for any career development plan and are
designed to help employees and their managers focus on areas that align
FLUOR SUSTAINABILITY REPORT 2008 23
employee interests with company requirements.
The courses highlighted in each Functional
Development Framework are provided by Fluor
University, the company’s global training and
development organization. The establishment
of Fluor University was a multi-year effort and
a carefully articulated response to feedback
employees provided in the company’s most recent
global Employee Engagement Survey.
Fluor University provides more than 1,000 online
courses, more than 200 instructor-led courses, and
many other educational programs and resources
to help employees enhance their performance and
develop their careers.
Online courses provide Fluor employees around the
world with easy 24/7 access to interactive learning
opportunities in everything from diversity and
inclusion, ethics, supervision, communications,
team building, computer skills and time
management, to finance, project management, sales
and strategic planning. By minimizing travel and
facility requirements, online learning is a costeffective solution that also helps manage carbon
emissions. Employees completed more than
138,000 hours of online learning in 2008.
Fluor’s instructor-led classes provide additional
in-depth learning opportunities. For example:
t In our three-day “Project and Business Controls
for Project Managers” class, participants are led
through a mock project where they encounter a
variety of challenges that require them to make
decisions that drive superior results for both the
client and the company.
t The one-day “Fluor Business Simulation”
class uses a Fluor-proprietary board game
to enhance participants’ understanding of
financial concepts and metrics, Fluor’s business
drivers and the connection between human
and financial capital.
t Fluor’s two-week “Construction Academy”
provides newly hired college graduates
in-depth instruction in all aspects of
construction execution.
Courses are offered according to demand and
business need. In 2008, approximately 532,000
student hours of training were completed in
our locations around the world. These included
technical, functional and project execution, as well
as business and professional training.
MISSION:
To provide an integrated
framework for delivering
the technical, functional,
business and leadership
development that drives
Fluor’s success.
Employees also are encouraged to pursue external
job-related learning opportunities through
professional organizations and colleges or
universities. Approximately 1,000 employees are
pursuing degrees or additional training through the
company’s tuition-reimbursement program.
Leadership Development
Fluor’s leadership development programs range from
coordinated stretch assignments and coaching across
business lines and functions to specialized programs
that include 360-degree assessments, feedback,
experiential learning, problem solving and individual
action plans. For example:
t Through the five-day Fluor Management
Institute program, employees increase their
understanding of cultural issues impacting
project execution, enhance their analytical and
problem-solving abilities and strengthen their
ability to collaborate and lead cross-functionally.
Among Fluor’s many
talent development
programs is Fluor
Business Simulation,
a one-day course that
uses a proprietary
board game simulating
real-life situations
on Fluor projects.
24 FLUOR SUSTAINABILITY REPORT 2008
t Through the four-day Fluor Leadership Summit, experienced
leaders such as department managers and project leads deepen
their business and financial acumen; assess their own behavioral
strengths and areas of development; improve their ability to
recognize and leverage the personality, preferences and behavior
patterns of others; enhance communication skills; learn how
to turn conflict into collaboration; and establish measurable
development goals and action plans.
Fluor’s Corporate Leadership Development Curriculum consists
of five programs corresponding to different stages in a leader’s
development. More than 500 employees have participated in these
programs over the last two years.
Fluor supports craft leadership through onboarding and training
processes to ensure that leaders in the field have the skills and
abilities to effectively administer the tasks associated with project
construction and field management.
t In 2008, Fluor implemented a Field Supervisor Orientation,
where field leaders learn about Fluor’s policies and site
supervisory administrative processes.
t Fluor revised and upgraded its Site Supervisory Training program
in 2008. This eight-hour course provides instruction on key
field leadership abilities, including delegating, coaching, setting
expectations and providing feedback.
Valuing and supporting leadership training across all sectors of the
organization is central to Fluor’s talent development program. Ensuring
we have leaders who can guide and direct daily business operations is an
essential component of our strategy for execution excellence.
Accelerating Technical Development
Aligned with our growth expectations, we also have specialized accelerated
development programs to ensure we continue to have the best pipeline of
technical, management and craft talent to deploy on projects. For example:
t Accelerating Skills to Advance Projects (ASAP) is a comprehensive
development program established in 2008 in which select
employees from Fluor’s engineering, procurement, construction
and support functions receive accelerated training and experiences
that will help them to develop enhanced execution management
skills and project management capability. Accelerated
development rotations in project controls, contracts/construction
and project management, combined with coursework and
coaching, provide key learning and experience over an eight- to
18-month period, depending on the employee’s level.
t XLR8™ is a program started at our Houston office to accelerate
development of new engineers and designers. As a supplement
to Fluor University coursework, program participants work
through various project-based experiences outside of their
discipline over an eight-month period to increase their
understanding of project roles and execution issues, strengthen
their business acumen and improve their understanding of the
many potential career paths available at Fluor.
t We also offer global accelerated training programs for craft
workers to attain skills to support project start-ups. For example,
in preparation for working on a gold-mining project in the
Dominican Republic in 2009, a new Fluor-developed craft
training center in Cotuí is training hundreds of local workers
on behalf of the client in various crafts, such as welding and
pipefitting, as well as health, safety & environmental matters.
Our training efforts not only help to ensure the highest standards
of safety and performance on our projects but also leave a lasting
legacy of people who have enhanced skills and knowledge that
continue to benefit the community long after our projects are
complete. Over the last 30 years, Fluor has trained approximately
250,000 craft personnel around the world – from Kazakhstan to
South Africa to Indonesia to Chile to the United States.
t Fluor offers pre-employment welder training programs in
Greenville, SC, and Houston, TX. The program focuses on
welder training, blending both hands-on lab experiences and
classroom teaching. In August 2008, an advanced welder
training program was launched in Greenville, specifically
geared toward experienced welders who work during the week.
Since its inception, more than 500 pipe welders have been
trained and placed on Fluor construction and maintenance sites
throughout the United States.
t Fluor’s Trades Certification and Validation Plan provides a
mechanism for evaluating and verifying a craft candidate’s
certification, education, training and work experience. This
program has proven essential in meeting the stringent employee
qualification requirements of the United States Army’s Logistics
Civil Augmentation Plan IV contract.
t In the Philippines, Fluor’s Asia Placement and Training Center
works in conjunction with technical and vocational schools to
teach craft curricula, preparing workers for local Fluor projects,
as well as for projects abroad.
FLUOR SUSTAINABILITY REPORT 2008 25
Sharing Knowledge and Inspiring Excellence
Fluor’s learning culture extends far beyond formal course
work. In fact, the majority of employee development
comes from coaching and on-the-job experiences.
At Fluor, coaching goes beyond annual performance
assessments. It is a collaborative process that
provides feedback, guidance and encouragement to
help employees maximize their potential and drive
superior company performance. To develop an even
stronger learning and coaching culture at Fluor, we
are launching a comprehensive coaching training
program with toolkits for our leaders in 2009. This
will expand to include peer coaching. Our goal is to
create an even more robust learning culture where
everyone is a coach, and coaching is for everyone.
Feedback from the company’s Employee Engagement
Survey and Employer-of-Choice Workshops
surfaced both executive visibility/accessibility and
more mentoring processes as areas of focus for our
company. As a result, we developed and implemented
a Mentoring Circles Program that allows us to
impact both of these areas. With the aid of continual
employee feedback, the program has grown over
the years since its inception in 2003. In 2008, 12
locations hosted more than 150 Mentoring Circles
with more than 1,200 employees participating in what
has become an award-winning program.
As a global engineering, procurement, construction,
maintenance and project management company,
knowledge management is especially critical
due to a constantly evolving project mix.
New college graduates
at Fluor are supported
during their first
years through the
Graduates Advancing to
Professionalism program,
a managementsponsored global
network that facilitates
the transition from
academic life to Fluor
careers.
26 FLUOR SUSTAINABILITY REPORT 2008
Knowledge Online™ is Fluor’s proprietary web-based
tool that facilitates the exchange and archiving of
best practices, information and solutions across
the company. Employees have at their fingertips
everything from specifications checklists for oil and gas
projects and analytical tools for estimators to concretetesting procedures for construction and cross-selling
toolboxes for sales. Employees also can efficiently
leverage the vast knowledge of Fluor experts around
the world by submitting questions to the appropriate
online “forum.” In addition, Fluor’s expertise in
sustainability is highlighted in its Professional
Publications & Presentations Program (P4SM), a forum
for employees who author and present articles in
industry trade media and at professional conferences.
Performance Assessment
At Fluor, we focus on employee opportunity and
development, supported by a global employee
assessment process that is transferable as employees
move across business lines.
Based on employee feedback provided through
the company’s most recent global Employee
Engagement Survey, Fluor addressed a key
engagement driver through the development of a
standardized process of annual performance and
development feedback. The new Fluor Performance
Assessment Program was rolled out in June 2008
and became mandatory for supervisors to use with
their salaried employees by the end of 2009.
The program, which has been tested against best
practices in the business community, provides a
globally consistent set of criteria and tools to address
fundamental performance objectives, such as Fluor
values and general business attributes, as well as to
facilitate more in-depth discussions between the
employee and supervisor. Its streamlined design ensures
that every salaried employee receives documented
feedback on his or her performance each year.
Total Compensation
Fluor rewards hard work, knowledge and commitment.
The company’s benefits and human resources programs
are designed to attract and retain a diverse workforce
of the best talent. Innovation and entrepreneurial
thinking are important aspects of Fluor’s culture, and
our benefit plans and policies encourage growth for
both the company and employees.
Maintaining an equitable means of compensating
employees is a key component of our philosophy.
The company pays competitive base salaries to attract
and retain qualified employees. Salaries reflect job
duties and individual job performance as measured
by annual performance appraisals and are based on
prevailing economic and market conditions.
Fluor ensures that all elements of pay are competitive
with the best companies in the locations in which we
operate. We review this each year to maintain our
competitive position in the global markets.
Executive compensation is reviewed by the
Organization and Compensation Committee of the
Board of Directors, which consists solely of nonemployee directors. It determines compensation
levels for the chairman and chief executive officer,
as well as his direct reports, based on an assessment
of competitive data from Fluor’s Compensation
Peer Group as detailed in our 2008 Compensation
Discussion and Analysis, which is included in Fluor’s
Proxy Statement.
Benefits
Around the world, we design and implement
competitive health and welfare programs, along with
retirement plans as appropriate, for our employees.
The few defined benefit plans in existence at Fluor are
consistent with industry standards and are funded
in accordance with government regulations in the
locations where we work.
MENTORING CIRCLES
AROUND THE WORLD
t
t
t
t
t
t
t
t
t
Canada
China
Poland
Singapore
Spain
The Netherlands
The Philippines
United States
United Arab Emirates
FLUOR SUSTAINABILITY REPORT 2008
27
“WHAT BEGAN AS A WAY TO MEET A BASIC BUSINESS NEED
FOR A POOL OF SKILLED LOCAL WORKERS TO COMPLETE
CLIENT PROJECTS GREW INTO A LARGE-SCALE EDUCATION AND
TRAINING EFFORT THAT HAS ENDURED TIME AND REMAINS THE
CORNERSTONE OF FLUOR’S ONGOING OPERATIONS.”
In 2009, Fluor will conduct a global inventory
of employee benefits to understand ongoing
competitiveness from a local country perspective.
Maintaining work/life balance is another important
aspect of Fluor’s benefits. Offices and job sites around
the world employ customized approaches to help
employees achieve appropriate work/life balance opportunities that are reflective of both local and individual
needs and business demands. Each facility can tailor
the time off policy toward serving the needs of its
particular employee population and business demands.
In the United States, Fluor also provides an Employee
Assistance Program to help employees address a wide
range of work/life issues, from daily concerns to those
of a more serious nature. Some of these services
might include basic counseling, financial planning,
legal advice and family mediation.
Diversity & Inclusion
Fluor’s goal is to sustain a diverse workforce by
leveraging the knowledge and talents of every employee.
Fluor’s policies and practices are built around the
premise that all employees should have opportunities to
excel in their chosen professions. Equal opportunity
at Fluor means that no one is disadvantaged because of
differences. It is company policy to base employment
decisions that involve hiring, training, testing,
promotions, transfers, compensation, reductions
in force, leaves of absence, terminations and other
employment actions upon job-related criteria and not
to unlawfully discriminate on the basis of race, color,
age, sex, sexual orientation, religion, national origin,
disability, veteran status, genetic information or any
other criteria protected by law.
Diversity and inclusion are embedded in our core
value of Teamwork. The company expects that
every employee proactively maintains a positive
work environment free from any form of unlawful
discrimination or harassment and promotes an inclusive
workplace where divergent ideas are leveraged to prompt
the highest possible level of innovation and excellence.
Diversity and inclusion are essential components
of all human resources processes, helping drive
the fundamental attributes of teamwork into our
global operations. For example, we place a high
priority on diversity and inclusion throughout our
talent development initiatives. Specific diversity
and inclusion-related behaviors are woven into
required competencies within Fluor’s Functional
Development Frameworks and Career Development
Guides. In addition, skill-building activities that
help people understand how to create an inclusive
environment are incorporated into both our
leadership and technical training courses.
Specialized diversity and inclusion training is
offered through our nine-course, online curriculum
that is available to employees worldwide. These
courses address how diversity influences daily
business operations and provide suggestions
about working inclusively within Fluor’s global
environment. Every employee completes the two
mandatory courses during orientation. In 2008,
employees from more than 50 locations completed
nearly 10,000 courses.
Fluor also provides a Global Diversity and
Inclusion Resource Center on the company’s
intranet. The purpose of this site is to provide a
central location for employees to find a wide variety
of tools and information that will increase their
knowledge about diversity and inclusion.
The goal is to provide a context for why this is
important to us and to help open minds to different
perspectives and cultures. The Resource Center
is divided into 12 focus areas, including a section
describing our business case for diversity and
inclusion, a listing of books that deal with specific
related topics and links to a global discussion
forum. Information is updated monthly, featuring
news, articles, book reviews and additional
resources. Also included are leadership messages
that give leaders an opportunity to express their
viewpoints about the benefits of diversity and the
importance of cultivating an inclusive workplace
grounded in effective teamwork.
“WOMEN HOLD UP
HALF THE SKY.”
– Chinese proverb
Nowhere is this more
evident than in Fluor
China, where out of 850
employees, 45 percent
are women from 15
different nationalities,
with roles in engineering,
procurement and
contracts, human
resources and
administration and
finance.
28 FLUOR SUSTAINABILITY REPORT 2008
RECOGNITION AND
AWARDS
Human Rights
Our belief that all individuals should be treated
with dignity and respect is firmly rooted in our core
value of Integrity. Fluor is committed to fostering an
environment that recognizes and supports all aspects
and dimensions of human rights.
Elimination of Forced, Compulsory and Child Labor
The company’s Code of Business Conduct and Ethics
supports our commitment to human rights.
Fluor does not utilize forced or compulsory labor. The
company recruits employees and provides working
conditions, including payment of wages and benefits,
that comply with applicable laws and regulations. No
Fluor operations have been identified as having a significant risk of forced or compulsory labor. All of Fluor’s
employees are above the legal employment age in the
country in which they are employed. Fluor supports
the use of legitimate workplace apprenticeships,
internships and similar programs that comply with all
laws and regulations applicable to such programs.
Regrettably, we recognize that in some parts of
the world, child and forced labor exist. We have
emphatically stated that we do not condone the
use of child or forced labor by Fluor or any of our
suppliers, clients or partners.
We take measures to provide working conditions that
comply with applicable laws and regulations, including
those applying to wages and benefits. As part of Fluor’s
business risk assessment process, we evaluate industrial
relations risks that could include any compulsory or
forced labor issues that might exist in a particular
country or job location and analyze any necessary
actions the company would need to take in order to
mitigate those risks.
Influencing Change
Furthermore, we believe our business presence can
and should have a positive influence on the treatment
of people in the communities in which we operate.
While our core business is centered on engineering,
procurement, construction and maintenance, we
view providing service to the communities in which
Fluor’s employees live and work as a privilege, and the
company works diligently to improve the rights of
indigenous people. Fluor has no reportable incidents
of violations involving rights of indigenous people.
Fluor has a long history in South Africa. Our
presence there dates back to 1960 with the award
of the Sasol Styrene Butadiene project and the
construction of the Caltex Refinery in Cape Town.
Fluor continued operations in South Africa during
the highly turbulent times of the 1980s. During
those years, Fluor trained nearly 6,000 local people
as semi-skilled and skilled craft workers and hired
them to work on projects at a time when there was
no classification to pay nonwhite supervisors on the
country’s pay scale system.
Fluor was among a myriad of multinational American
companies listed in a multibillion-dollar lawsuit claiming
exploitation of workers in apartheid-era South Africa. In
late 2008, Fluor was dropped from the litigation and all
plaintiffs confirmed that there is no current intention to
involve the company in any of the actions.
What began as a way to meet a basic business need
for a pool of skilled local workers to complete client
projects grew into a large-scale education and training
effort that has endured time and remains the cornerstone of Fluor’s ongoing operations in South Africa.
We maintain an active presence through our office
in Sandton, where Fluor coordinates operations in
Durban, Sasolburg, Secunda and sub-Saharan Africa.
Freedom of Association and Right
to Collective Bargaining
Fluor recognizes and respects the legal rights of
employees to join or to refrain from joining worker
organizations, including labor organizations or
trade unions, without fear of reprisal, intimidation
or harassment. The company complies with legal
t G.I. Jobs magazine’s list
of the 50 Most Military
Friendly Employers for
the third consecutive
year; Fluor ranked in
15th place overall.
t Business Centre Club’s
Caesars of Silesian
Business Award,
recognizing Fluor as a
business resource for
intellectual potential in
Poland. (Gliwice office)
t HR Impact Award,
which recognizes
excellence in human
resources programs
and practices. (Houston
office’s Mentoring
Circles Program)
t Presidential Rank
Awards’ Meritorious
Executive Award for
exceptional leadership,
accomplishments and
service. (Ronald W.
Hertwig Jr.)
t Black Engineer of the
Year Awards’ Modern
Day Technology
Leaders, recognizing
those shaping the
future of engineering,
science and technology.
(Lynn E. Weaver and
Hubert E. Ausbie II)
t Texas Tech
University College
of Engineering’s
Distinguished
Engineer Award.
(Tom Zachman)
t Society of Women
Engineers (SWE)
Emerging Leader
Award, which honors
women engineers who
have demonstrated
outstanding
leadership and
technical excellence.
(Amy Herbert)
t RasGas Shukran
Award for outstanding
performance or
accomplishments on
the RasGas Common
Off-Plots Project in
Qatar. (Ed Standiford
III and Tamilmaran
Duraisamy)
FLUOR SUSTAINABILITY REPORT 2008 29
requirements worldwide regarding employee and third-party involvement and provides training in which
managers and supervisors are advised of employees’ rights in this respect. Where employees are represented by
a legally recognized union, we are committed to establishing a constructive dialogue with their freely chosen
representatives and are committed to bargaining in good faith with such representatives. Our long-standing belief
is that the interests of Fluor and our employees are best served through a work environment that is collaborative
and allows for direct communication between employees and management.
Looking Ahead
The impact of the ongoing global economic crisis is far-reaching, and Fluor is not immune. Like many companies,
Fluor is taking proactive steps to reduce expenses and to contain costs during 2009 and beyond.
We remain committed, however, to maintaining our position in a marketplace that will become even more
competitive in the coming years. Performance and execution are key to our Human Resources plan, which also
will focus on retention, diversity and inclusion and strategic investments in the training and development of our
people and leaders, who provide Fluor’s competitive advantage.
Through its work in
designing and building
some of the world’s
greatest industrial
projects, Fluor has an
esteemed track record
of providing craft
training that meets
the highest industrial
standards to indigenous
workers, furthering
their employment
opportunities and
professional growth.
30 FLUOR SUSTAINABILITY REPORT 2008
RESPECT AND UNDERSTANDING
ARE USEFUL BUILDING TOOLS.
The Newmont Power Project.
In more than three decades at Fluor, Jim Law had already seen a lot of interesting challenges when, in 2004, he
took on a new one: site manager of the TS Power Project in northeastern Nevada. Of course he had to complete
the job on time and within budget, but Law faced an immediate and thorny problem. This project was in one of
the state’s least populated counties, hours from any major population center. He needed to determine how and
where to find enough qualified, skilled people to work on the isolated site for the next four years.
Drawing on knowledge gained from experience in similar circumstances and partnering with internal Human
Resources management and external resources, Law and his team set to work to meet the challenge. Their
staffing plan was two-pronged. They would attract and retain qualified workers, some of them experienced and
already in the Fluor database, and at the same time develop and train people new to the construction industry.
Aware that they would have to rely largely on the self-employed for their needs, Law and his team also knew many
potential workers resided in the Native American communities in surrounding counties.
Through job fairs and other methods, Fluor was able to recruit people, not only from Nevada but also from
neighboring states, who were willing to travel to or temporarily locate in the remote construction area in Eureka
County. Among them were more than 450 Native Americans, many from the Navajo Nation and about half of
whom were new to Fluor and to the construction industry.
The company used DEL-JEN’s Job Corps training facility in Albuquerque, NM, to provide the basic skills
training required to maximize employees’ efficiencies on site. A significant majority of the students were Native
Americans taking advantage of the opportunity to better themselves economically. Additionally, Fluor set up
facilities to provide training in key crafts such as welding, pipefitting and ironworking.
But job skills training was only part of the education required for this project. Fluor supervisors had
something to learn as well.
“We had a learning curve with our supervision,” he says. “We all realized that we needed to work within the
Native Americans’ culture, rather than expecting them to adjust their ways to ours. For instance, once we
understood that tribal traditions require younger workers to listen to the elders in the community, we were able to
establish more effective work teams.”
“Through our research, we also learned that important tribal traditional celebrations and observations called for the
attendance of many of our workers. When we respected those needs, we found morale improved, and we were better
able to retain the workers, which was, of course, extremely important to the on-time completion of the project.”
In the 1980s, Law had hired members of the Navajo Nation as welders on another project. That experience, along
with the TS Power Project, drove home some important lessons. Key among them, Law recalls, was, “Learning
local workers’ cultures and traditions and managing accordingly are very important to the success of a project.”
Fluor completed the engineering, procurement and construction of the 242-megawatt power plant project
during 2008, delivering an innovative design and world-class technology within budget, ahead of schedule and
with a stellar safety record. “This project exemplifies how high safety standards coupled with industry-leading
environmental performance, world-class design, expert construction and procurement can be leveraged for client
success,” said David Constable, Fluor group president. “Our project team worked 3 million hours without a losttime accident and was recognized with a ‘Safe Partner Award’ by the State of Nevada.”
FLUOR SUSTAINABILITY REPORT 2008
31
Fluor recruited and
trained people from
Nevada and neighboring
states to staff the
242-megawatt power
project in Eureka County
for Newmont Mining
Corp. Among them were
more than 450 Native
Americans, many from
the Navajo Nation and
about half of whom were
new to Fluor and to the
construction industry.
“LEARNING LOCAL WORKERS’ CULTURES AND TRADITIONS
AND MANAGING ACCORDINGLY ARE VERY IMPORTANT TO
THE SUCCESS OF A PROJECT.”
32 FLUOR SUSTAINABILITY REPORT 2008
WE’VE HAD GREAT SUCCESS
IN PLAYING IT SAFE.
Health, Safety & Environmental.
Savannah River Nuclear
Solutions, a Fluor-led
partnership, successfully
assumed responsibilities
to manage and operate
the Department of
Energy’s Savannah River
Site in 2008.
With the core values of Safety and Excellence driving accomplishment throughout Fluor’s global operations, our company’s 2008
performance in health, safety & environmental (HSE) matters was exceptional. Fluor’s approach to HSE issues is derived from a
combination of bedrock principles and extensive knowledge obtained over many decades of experience. Successfully managing these
issues to the lowest possible risk levels is an essential component of our strategy and integral to the way we do business.
Our goal is to achieve Zero IncidentsSM in our HSE performance by minimizing the impact of our operations on the environment
and by preventing harm to individuals directly involved with or indirectly affected by those activities. Our proven HSE Management
System, comparable to ISO 14001, OHSAS 18001 and the U.S. OSHA Voluntary Protection Program, integrates the highest
international standards into each project phase and verifies our consistent and complete performance. Each year our company builds
on the achievements of the prior year to further protect the health and safety of individuals and preserve the ecosystem.
FLUOR SUSTAINABILITY REPORT 2008 33
PROTECTING
OUR PEOPLE.
Health & Safety.
At Fluor, we’ve recognized the value of managing
health and safety and have made it a fundamental part
of our operations. For several decades now, we have
been – and continue to be – recognized as one of the
safest contractors in the engineering and construction
industry globally. We never lose sight of the fact that
the numbers reflected in our safety statistics represent
real people – the heart and soul of society’s workforce
and our company’s most valuable resource. It’s
not just another initiative within our company; it’s
inherent in our behavior-based culture.
Program Elements
Health and safety success does not happen “by
accident,” and Fluor has made significant investments
over the years to develop safe and healthy work
environments for its employees. Fluor management
takes a proactive approach to reviewing the company’s
health and safety programs, identifying potential
areas for improvement and ensuring thorough
evaluations of all incidents.
Fluor’s health and safety culture is strengthened
and sustained through a variety of programs. The
company offers more than 40 HSE training courses,
and employees are encouraged to stay abreast of
health and safety matters throughout their careers.
In our offices, we use many communication tools
to educate and engage our employees in HSE issues,
including the company’s intranet website and
its knowledge management collaboration portal,
Knowledge OnlineSM.
Our HSE Management System is applied globally to
each office and project site and involves pre-planning,
job-site hazard analyses, establishing inspection
and monitoring procedures, and reporting our
results. Fluor’s Zero-Incident High-Impact Injury
Reduction Techniques have consistently created
safer job sites and reduced workplace injuries since
their implementation in 2001. Originally based on
best practices recommended by the Construction
Industry Institute and customized to reflect our
own experiences, these 12 proven techniques
include subcontractor management; pre-project HSE plans; HSE education and
orientation; new employee development; HSE awareness programs; substance abuse
programs; recognition and rewards programs; incident reporting and investigation;
pretask planning; site management participation; audits and assessments; and
utilization of networking and resources. Health and safety performance of all our
business groups is monitored monthly, and Fluor’s Monthly Incident Experience
Reports and the Global Information Management System measure and monitor
incidents and activities and evaluate compliance with HSE systems.
Fluor’s proprietary Managing Safety to ZeroSM (MS20) web-based program tracks
leading and trailing HSE indicators, such as daily audits, near-miss incidents and
hazards eliminated, to help project management improve working conditions
and reduce incidents. In 2008, MS20 was utilized on 20 projects globally,
representing 22 million work hours. Projects using the program finished 2008
with an improved Total Case Incidence Rate of 0.20, down from 0.21 in 2007.
Measurements, such as management-attended walkabouts, self assessments, adopta-crews and training, exceeded pre-planned goals. Safety Task Assignments,
hazard elimination and near-miss reporting are areas for improvement.
MS20 2008 Results: Safety Leading Indicators Metrics (SLIM)
Average Weekly SLIM Scores:
GOAL
ACTUAL
687
236
Near Miss
1
0.3
Management Attended Walkabouts
2
5
Self Assessment
5
14
343
234
21
62
110
412
Hazard Elimination
Safety Task Assignment (STAs)
Adopt-A-Crew
Training (hrs per wk)
In addition to the internal HSE programs Fluor supports, many of the company’s
recognized experts in specific HSE disciplines also work with public agencies and
professional associations worldwide to develop industry and governmental standards
and requirements to protect people, property and environmental resources.
2008 Performance
The company had its best-ever health and safety performance in 2008, with a 14
percent reduction in overall injuries last year. Fluor experienced just 0.02 lost
workday incidents per 200,000 hours worked around the globe, which remained
consistent with 2007’s strong performance. We also performed below our goals for
both total recordable case incidence rate and restricted workday case rate.
34 FLUOR SUSTAINABILITY REPORT 2008
Fluor offices globally experienced no restricted
workdays and just one lost workday case for more
than 41 million hours worked in 2008.
Health and Safety Performance Office and Field Operations
(Self-perform and Subcontractors)
Fluor office and field performance ended 2008 with excellent results per 200,000
hours worked:
t
t
t
t
Field Operations
(Self-perform and Subcontractors)
Restricted workday case incidence rate (DART-R): 0.04
Lost workday case incidence rate (DART-L): 0.02
Total recordable case incidence rate (TCIR): 0.22
Total hours for 2008 increased by 2 percent, from 364 million to 371 million.
Exposure hours for self-perform and subcontractors
combined increased 1 percent from approximately
329 million hours in 2007 to 330 million hours
in 2008. With this 1 percent increase in hours for
2008, the year-end restricted workday case incidence
and total recordable case incidence rates were
0.05 and 0.25, respectively. Even as work hours
increased in global field operations, our company’s
lost workday case incidence rate decreased from 57
in 2007 to 48 in 2008, resulting in an overall lost
workday case incidence rate of 0.02.
While we incurred no employee fatalities in 2008, despite our excellence in HSE
performance, however, two of our subcontractors experienced fatalities last year. To
address these incidents, we have strengthened processes to focus on specific preventive
actions and will continue monitoring and improving upon those processes in the future.
Office Operations
In 2008, Fluor’s office exposure hours increased 14 percent to 41 million hours
compared to approximately 36 million hours in 2007. Health and safety
performance rates were as follows:
Incidence Rates:
2007
2008
Total Recordable Case Incidence Rate (TCIR)
.02
.02
Restricted Workday Case Incidence Rate (DART-R)
0.00
0.00
Lost Workday Case Incidence Rate (DART-L)
0.00
0.001
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
t
Lost Workday Cases
Total Recordable Cases
(with days away) per 200,000 hours worked
per 200,000 hours worked
0.06
t
t
0.05
t
0.04
t
2003
Because the health and safety of our employees
and those who work with us are so important, we
continuously challenge ourselves in this area and
have set even more ambitious goals for 2009, ones
that exceed our 2008 targets, in an ongoing effort to
improve our performance.
2004
2005
2006
2007
t
0.03
t
2008
t
t
t
t
0.02
t
0.01
0
2003
2004
2005
2006
2007
2008
FLUOR SUSTAINABILITY REPORT 2008 35
Continuous Improvement in HSE
The HSE services that Fluor provides its clients and
employees, as well as other stakeholders such as
communities, are continually assessed for improvements
and enhancements. These services include HSE in
design, in offices and in execution – construction,
commissioning, operations and maintenance. Fluor’s
HSE Management System and best practices are
reviewed on an annual basis, and enhancements and/or
new procedures are implemented as necessary.
HSE: Global Reach, Local Impact
In our offices and on project sites worldwide, HSE
Committees are established to manage local issues
using the company’s global resources. Included in
their responsibilities are:
t Cultivate an active interest in HSE issues
and assist in reducing work-related injuries,
illnesses and hazards;
t Assess and make recommendations for HSE
training and education;
t Review and enhance all HSE procedures
for the workplace;
t Examine the circumstances surrounding recent
workplace injuries and incidents, as well as workrelated illnesses, and make recommendations to
mitigate risks and improve performance;
t Propose programs aimed at raising and maintaining interest in the workplace HSE program;
t Review planned inspections and audits and make
recommendations to correct unsatisfactory levels
of performance; and
t Provide full and proper documentation of
all meetings, recommendations and other
relevant endeavors.
While the company makes every effort to protect its
workers from health and safety risks, it also offers
assistance programs, such as educational classes,
counseling and prevention/risk control measures, for
workers and their families worldwide to help them
manage serious disease cases.
OSHA Voluntary Protection Program
Corporate Pilot Membership
One measure of a successful HSE program is recognition from third parties.
Fluor received a number of honors during 2008. However, Fluor’s selection
as one of just seven organizations certified by the U.S. Occupational Safety
and Health Administration (OSHA) for its Voluntary Protection Program
(VPP) Corporate Pilot is most notable. VPP certification is OSHA’s formal
recognition of the outstanding efforts of employers and employees who
achieve exemplary occupational health and safety records.
This recognition is particularly important to Fluor. Beyond being a role
model for workplace health and safety, VPP companies generally experience
other benefits, such as 50 percent fewer lost workday injuries; injury and
illness rates that are 53 percent below their industry’s average; and reduced
workers’ compensation costs. As part of the VPP Corporate Pilot, Fluor
enters a cooperative, action-oriented partnership with OSHA, working
together to reduce workplace hazards, injuries and illnesses. In addition to
participating in its Corporate Pilot Program, Fluor has made the commitment
to OSHA to bring 10 new work sites into the VPP within the next two
years. In doing so, we will add these sites to our current six active OSHA
VPP sites and nine U.S. Department of Energy VPP sites.
36 FLUOR SUSTAINABILITY REPORT 2008
POWER
Project Name: OAK GROVE POWER GENERATING FACILITY
Client: LUMINANT
Project Description:
Ensuring Union Compliance
In addition to stressing the importance of HSE
to its own employees, Fluor also collaborates with
trade unions to help ensure that our commitment
to health and safety matters is embraced by all
workers. The following health and safety topics
are typically included in formal agreements with
trade unions:
t Compliance with applicable provisions of
all government-mandated health and safety
laws and regulations;
t Development of site-specific safety,
industrial hygiene and environmental
requirements;
t Emergency procedures;
t Means to report unsafe work conditions;
t Worker protection and right to know;
t Workplace monitoring;
t Safety and personal protective equipment;
t Substance abuse prevention program;
t Periodic medical examinations;
t Provisions for safety inspections, first-aid
services and safe, clean areas for meals;
t Formation of jobsite safety committees
and assurance of subcontractors’ safety
organizations; and
t Safety training.
The Oak Grove power plant currently under construction in Robertson
County, TX, will consist of two supercritical lignite-fueled power generation
units. When complete, the plant will deliver about 1,600 megawatts of reliable
power to Texas.
2008 Key Sustainability Points:
t On December 1, 2008, Fluor achieved 6 million safe work hours without
a lost-time injury.
t Oak Grove Units 1 & 2 will use the best-available control technology to
reduce air emissions. Luminant also will set a new environmental standard
by offsetting all sulfur dioxide, nitrogen oxides and mercury emissions from
this and other new Luminant plants under construction and by making
reductions at Luminant’s existing coal-fueled plants.
t Oak Grove will utilize two supercritical coal boilers – burning locally mined
Texas lignite – with a selective catalytic reduction system for nitrogen oxides, a
fabric filter for particulate control and sorbent injection for mercury removal.
t One of our key objectives in building this power plant for Luminant was
to develop and implement a sustainable business model to build power
generation facilities for less cost and in less time and to enable consistent
power operation at superior reliability.
t Expected benefits in Texas include a significant reduction in long-term
power prices relative to the industry.
t The Oak Grove/Kosse Mine Diversity Committee recently completed
successful events that included coat and food drives. The Oak Grove staff
collected an abundance of food and approximately 150 coats that were
donated to the local community.
FLUOR SUSTAINABILITY REPORT 2008
37
PROTECTING
OUR PLANET.
Environment.
Global clients are confronting questions of energy efficiency
and supply, power demand, carbon reduction, infrastructure
development and other sustainability issues every day. Fluor is
being increasingly called on to use leading-edge technical skills to
design and build more environmentally friendly capital projects and
support our clients in their drive toward a more sustainable future.
In addition to supporting client needs, we also recognize that our
own operations have an impact on the environment. As such, we
have begun to measure our corporate emissions, as well as record
energy efficiency and associated environmentally conscious activities
in which we are engaged at our facilities around the world.
Program Elements
Fluor employees worldwide work with clients to implement many
projects with environmental standards beyond legal requirements and
participate in efforts to improve industry environmental performance
in all areas. We incorporate appropriate HSE features into project
designs to minimize environmental impacts and the potential for
hazardous events. These HSE practices are then consistently applied
through the construction phase of every project Fluor executes.
Fluor’s training initiatives in the field help those who have front-line
responsibility for implementation of environmental sustainability
initiatives at project locations. Managers and workers constantly
seek to cut energy consumption, work in more environmentally
friendly ways, operate in a safer, more efficient manner and
contribute to sustainability in local communities.
Climate Change
Fluor recognizes that the concern among the general public, industry
and governments about climate change will likely have a significant
impact on business and regulation for the foreseeable future.
Allowing greenhouse gas emissions to rise, with a corresponding
potential increase in global temperatures, involves very high risks.
Mitigation of these risks is a prudent approach. At the same
time, it is essential to keep in mind the importance of energy
to the global economy.
In Fluor’s role as an engineering and construction services provider,
we are prepared to help our clients across various business sectors
realize their greenhouse gas emissions-reduction goals through a
variety of innovative and technical solutions.
Corporate Carbon Footprint
Fluor has developed a voluntary global carbon footprint program,
using 2006 as the company’s baseline year. With the support of
ICF International, a leading carbon-emission consultant, Fluor
followed the Greenhouse Gas (GHG) Protocol standards for our
inventory. Thorough data collection is now conducted annually
by Fluor’s facility managers.
Measurement
Fluor selected an “operational control” GHG Protocol approach
for determining emissions associated with its global facilities’
operations. Our carbon footprint boundary encompasses all
company offices, whether owned or leased, all air travel and all
owned or leased vehicles used for company purposes. It does
not include client project sites. In examining this boundary, the
company was rigorous in its data-gathering efforts, and ICF
reviewed the information for consistency, accuracy and conformity.
Fluor has also created a dynamic GHG emission data collection
process to enhance annual estimates of its carbon footprint,
allowing us to update emissions information and identify
reduction strategies.
Methodology
On a global basis, we included all GHG Protocol emission source
categories defined as:
t Scope 1 – Direct emissions on-site (natural gas for
heating/hot water, fleet emissions)
t Scope 2 – Indirect emissions (electricity usage)
t Scope 3 – Emissions generated from air travel
It is these operational areas where Fluor has the greatest ability to
both measure and manage our GHG impact, including energy
consumption, GHG emissions, ozone-depleting emissions
and many other factors. Based on a three-year collection of
data, Fluor will consider appropriate ways to reduce its carbon
emissions through energy efficiencies, recycling activities and
conservation efforts.
38 FLUOR SUSTAINABILITY REPORT 2008
“Fluor is gathering data regarding green initiatives occurring at its various facilities, including activities related to
energy efficiency, recycling, conservation, landfill avoidance and fleet management. These data will be compiled
and then shared globally with all facility leads, so they may seek to learn from one another and improve their
sustainable initiatives. The green initiatives data also will be shared internally through a knowledge management
community dedicated to this topic. Green best practices guidelines for Fluor offices, as well as specifications
for green purchasing and site improvements, will be available as reference for our facility leads, as well as other
interested Fluor colleagues. The carbon footprint measurement, in conjunction with the green best practices,
will provide Fluor personnel with important tools to help them manage their energy use.”
– David Constable
Group President, Fluor
Carbon Emissions
Fluor’s carbon emissions for 2006 – our baseline year – and
2007 are shown below. Electricity constituted the largest
emissions category, followed by air travel. Total emissions
percentages by source were:
Fluor’s Total CO2 Emission Results
Baseline 2006
2007
Energy Efficiency and Voluntary Environmental Efforts
in Our Offices
Fluor maintains facilities with over 7 million square feet of office
space. In an effort to both reduce the financial risk associated with
rising energy costs and simultaneously better manage our GHG
emissions, electricity and energy-savings initiatives exist at all offices
globally. Each facility has developed distinctive solutions based on
its unique location and culture. While some activities require capital
investments near term, the benefits will be substantial long term.
In 2008, through a variety of energy-saving programs, Fluor reduced its
energy consumption by 7.5 million kilowatts globally. This is roughly
equivalent to powering over 1,600 computers 24 hours a day, seven days
a week for an entire year, or illuminating a 100-watt light bulb for more
than 8,333 years. Energy conservation and efficiency improvement
examples at Fluor facilities include (but are not limited to):
t Upgrading HVAC systems and installing window tinting;
Electricity, Natural Gas & Other Fuels
Air Travel
Fleet Fuel
Fluor Group President David Constable, who serves as Executive
Sponsor of Fluor’s Carbon Footprint Program, reports: “Fluor has
completed two years of carbon footprint calculation and is in the
process of calculating its 2008 numbers. These data will allow us to
examine the source of our emissions and help identify areas where
we can improve our energy efficiency.”
HSE Management System
Fluor’s proven HSE Management System mandates environmental
management controls to mitigate the environmental impacts at all
Fluor project construction sites worldwide. As a result of the strong
and consistent application of our HSE Management System, Fluor
received no Notices of Violation for environmental issues and no
resulting monetary or other sanctions for non-compliance for its
fourth consecutive year since it began tracking these data in 2004.
t Improving electric control systems and installing motion
detectors and lighting timers in offices, corridors and washrooms;
t Installing energy-efficient light bulbs and lighting ballasts;
t Consolidating and better managing energy use in data server rooms;
t Continuing implementation of the Verdiem™ system on
computers and monitors, which has shown per unit energy
savings of approximately 30 percent;
t Installing a new white roof, plus an additional inch of insulation
at Fluor’s Greenville, SC, office to reduce energy consumption
and improve ambient cooling; and
t Conducting energy awareness and education programs at many
Fluor locations around the world, including Australia, Canada,
India, Mexico, the Netherlands, the Philippines and Spain.
Our office employees worldwide have taken on additional
voluntary efforts to reduce the company’s operational impact on
the environment. In 2008, Fluor:
t Recycled well over 3.1 million pounds of assorted bulk materials;
t Installed energy-efficient dishwashers, automatic flow faucets
in sinks and water-saving toilets and urinals to save 577,000
gallons of water;
t Recycled and also significantly reduced use of paper by setting
copiers to double-sided printing;
FLUOR SUSTAINABILITY REPORT 2008 39
t Used non-disposable dishware and cutlery and
recycled cooking oils from our cafeterias;
t Recycled toner and ink cartridges and purchased
recycled or remanufactured toners, significantly
reducing material costs;
t Refurbished and reused more than 1,500
workstations and furniture items globally. We
also donated used furniture to charities, avoiding
unnecessary landfill volumes;
t Recycled batteries, tires, plastics, filters,
cardboard, cans and fluorescent light bulbs. In
our Charlotte, NC, office, the company used
rolling, reusable moving bins, which eliminated
the need to purchase 1,680 cardboard boxes; and
t Installed beverage water equipment, such as
on-site water purification systems, to significantly
reduce plastic water bottle waste.
Water Management
As a services provider, Fluor has limited use of, and
opportunities to, recycle water. Nevertheless, in
Greenville, SC, recycled water is used to irrigate
outdoor landscaping at the site. At our headquarters
building in Irving, TX, reclaimed water is used for
irrigation purposes as well. In Santiago, Chile, polluted
water is removed from the facility site at no cost and
recycled by a third party. In 2008, the minimum
amount of water Fluor recycled was 43,250 gallons.
Waste Management
Fluor reported no significant spills in 2008.
Transportation
Globally, Fluor maintains an active and effective
fleet program, which reduces energy consumption
related to vehicle use. The program offers
transportation to employees between offices and
designated area locations, as well as for corporate
visitors and client events. In many cases, Fluor
locations are using hybrid, electric or other “smart
green” vehicles to address transportation needs.
ENERGY & CHEMICALS
Project Name: CARTAGENA REFINERY EXPANSION
Client: REPSOL-YPF
Project Description:
This mega-project is the largest downstream investment in Spain’s history,
doubling the distillation capacity of the Repsol Cartagena refinery from the
current 5.5 up to 11 million tons per year. Fluor’s scope of work includes
the design and construction of new utility units and the refurbishment and
expansion of existing units, as well as construction of utilities and offsites.
2008 Key Sustainability Points:
t Complex environmental impact assessment conducted due to the following
reasons: site located in a busy industrial area, with irregular topography
and adjacent to an environmentally protected area; observation of stringent
regulations coming into force in 2010; atmospheric emission modeling
had to include emissions from potential future facilities in the area;
and minimization of fuel-oil usage as combustion fuel. Administrative
process involved national and local agencies. Environmental permits
were the critical path for the start of construction. Main environmental
permit awarded in a record time of 13 months.
t Extensive application of European best-available technologies and
techniques for energy efficiency and recovery of water. Energy consumption
rate of the refinery within first quartile of Solomon Survey, an industry
benchmarking service by Solomon Associates to assess competitive
performance. The study collects and analyzes relevant data concerning
environmental facilities, resources and other issues affecting environmental
operations and performance for refineries.
t Implemented measures to protect the local flora and fauna in the area,
including reforestation, as well as landscaping restoration.
t The expanded refinery will emit the same quantity of nitrogen oxides
as before, although it will be producing more than twice the product;
sulfur dioxide will be reduced by 11 percent and particulates will be
reduced by 45 percent from current levels.
t In situ reuse of all excavated soil.
t Dust generation is minimized by paving and reduction of speed
limits, rather than by watering.
t Maintenance, including washing of cars and machinery, onsite
is forbidden.
40 FLUOR SUSTAINABILITY REPORT 2008
GOVERNMENT
Project Name: HANFORD CLOSURE SERVICES
& INFRASTRUCTURE (CS&I)
Client: U.S. DEPARTMENT OF ENERGY
The benefits of our proactive fleet management
program are substantial. In 2008, Fluor was able to
avoid at least 715,000 personal vehicle miles driven
and prevent over 94,000 personal vehicle trips.
These fleet management actions improved employee
productivity and helped manage the company’s
carbon footprint.
Project Description:
Our Work
CS&I provides infrastructure and site services to the U.S. Department of
Energy’s Hanford Site and involves approximately 750 employees. The $147
million work scope includes infrastructure construction projects; water, sewer
and electrical utilities; fire department; analytical services; facilities and land
management; facilities maintenance; transportation, crane and rigging, and
fleet services; custodial services; and technical services and engineering.
Technology Advancements, Environmental
Protection
2008 Key Sustainability Points:
In addition to our own efforts, Fluor has the proven
experience to help clients quickly achieve environmental
compliance in the most cost-effective manner. Over
the past 30 years, Fluor has delivered innovative and
technical solutions to help clients realize their GHG
emission-reduction goals, as shown below:
t Mortar-lined a 12-inch-diameter sanitary water line nearly three-quarters
of a mile long. Mortar lining is a cost-effective process: twice as much
water line can be rehabilitated with mortar lining for the same cost as
replacement. Further, the flow rates more than tripled, and the quality
of the water improved. The mortar-lining method restores pipelines in
place by applying a proven formula of high-strength cement mortar as
a liner that stops leaks and smoothes pipe interiors.
t Selective Catalytic Reduction (SCR) to remove
nitrogen oxides – Fluor has designed and installed
many projects using different SCR compliance
technologies that service a total power plant
capacity of 33,023 megawatts around the world.
We are presently working on future SCR projects
that total an additional 6,067 megawatts.
t CS&I manages the recycling program for the entire 560-square-mile
Hanford site. In 2008, the office paper shredding and recycling program
generated 416 metric tons of recycled paper and 22 metric tons of corrugated
cardboard. Other items that were recycled include 392 metric tons of iron/
steel, 106 metric tons of non-ferrous metal, 319 metric tons of antifreeze,
27 metric tons of engine oils, 13 metric tons of toner cartridges, 15 metric
tons of batteries, 5 metric tons of tires, 18 metric tons of fluorescent
bulbs and 48 metric tons of lead batteries. In addition, 28 metric tons of
electronic equipment was either transferred or donated for reuse.
t Flue Gas Desulfurization (FGD) to remove
sulfur oxide – Fluor has designed and installed
projects using many different FGD compliance
technologies that service a total power plant
capacity of 17,784 megawatts around the world.
We are presently working on future FGD projects
that total an additional 4,593 megawatts.
t Particulate Control – Fluor has designed and
installed projects using various particulate
control technologies that service a total power
plant capacity of 14,623 megawatts around
the world. We are presently working on
future particulate control projects that total an
additional 1,612 megawatts.
Fluor uses several different carbon dioxide (CO2)
capture technologies on our projects that remove
CO2 emissions from flue gas stacks and from
t CS&I completed reseeding more than 7,000 acres of land that was
burned during a wildfire that spread across the site. More than 187,000
pounds of native seed grass were spread.
t Self-generated renewable energy efficiencies:
t Installed two mobile and 41 fixed solar-powered emergency sirens;
t Installed five voltaic message reader boards along Hanford roads;
t A solar-charged battery system now powers 2,530-HZ low-power
AM broadcast stations and two radio station sites;
t A series of solar-charging stations and remotely operated valves and
pressure transmitter are used to provide monitoring and control
capabilities from a water-plant control room in the middle of the
Hanford site; and
t Water consumption was reduced by 18.8 percent in 2008.
FLUOR SUSTAINABILITY REPORT 2008
41
INDUSTRIAL &
INFRASTRUCTURE
Project Name: NATIONAL ROADS
TELECOMMUNICATIONS SERVICES (NRTS) A2NC
Client: U.K. HIGHWAYS AGENCY
gasification systems. One such technology that is
presently attracting significant global interest is Fluor’s
Econamine FG+SM process, which is designed to
separate CO2 from power plant flue gas streams. Our
company is presently partnering with E.ON Energie
AG to showcase the Econamine FG+SM technology at
E.ON’s pulverized coal power plant in Germany. The
plant will be jointly monitored by E.ON and Fluor
for a period of three years to prove the commercial
readiness of the technology for CO2 capture from
coal-fired power plant flue gas.
®
Fluor also is a partner in the Powerspan ECO
(Electro Catalytic Oxidation) technology. This patented
multi-pollutant process provides high removal of sulfur
dioxide, nitrogen oxides, mercury, and fine particulate
matter from the flue gas of coal-fired power plants.
This technology is currently being utilized on a
50-megawatt commercial unit at First Energy’s
R.E. Burger Plant’s generating station in Ohio.
Fluor is always looking for ways to improve
construction techniques for its clients. We are
currently working on a new welding technique that
could eliminate metals fumes that occur during
conventional welding. This will improve workplace
safety while providing higher-quality welds.
Project Description:
This 10-year National Roads Telecommunications Services (NRTS) project is a
public-private partnership to upgrade, operate and maintain the communications
systems that link the roadway communication devices (emergency telephones,
CCTV, etc.) along the motorways and other main “A” roads in England
with the national traffic control and police control centers.
2008 Key Sustainability Points:
t The project achieved certification to the international standard OHSAS
18001 for Occupational Health and Safety Systems.
t International standard ISO 27001 Information Security Management
certification was also achieved with an extensive business continuity/
disaster recovery exercise undertaken.
t These two further international standards have been added to the existing
Quality ISO 9001 and Environmental ISO 14001 standards, with the
project becoming one of the first to achieve all four standards.
t The project achieved more than 1.3 million safe working hours.
t Upgrading of equipment on the network has been chosen for suitability
and energy consumption. The equipment that will be removed will be
sold to reduce waste and recover value.
Renewable Energy, Environmental Remediation
A substantial and growing part of Fluor’s business portfolio involves work in the renewable energy and environmental remediation markets.
Evidenced by its recent awards to build two of the world’s largest wind farms off the coasts of the United Kingdom and Scotland and the
world’s largest polysilicon plant to fabricate solar panels – all of which will produce clean energy – Fluor is well positioned to provide similar
services to clients seeking alternate means of power generation to reduce GHG emissions.
With a team of experienced nuclear professionals and nine nuclear construction projects safely completed, Fluor also stands ready to meet the
global demand for nuclear energy. The company has received its nuclear certificates of accreditation, placing Fluor in the top tier of firms
capable of developing nuclear projects worldwide.
For many years now, the company has leveraged its commercial operations and program management expertise to support government
clients, helping to solve their urgent national priorities of stabilizing substantial quantities of high-level nuclear materials. At several U.S.
Department of Energy sites, our experts focus on the safe disposition of large inventories of hazardous materials; the cleaning and demolishing
of contaminated facilities; the remediation of groundwater; and a variety of other technically challenging support services. Given our track
record of success, we are well positioned to bring this expertise to other similar U.S. Department of Energy sites and to nuclear remediation
projects in the United Kingdom, Russia and throughout the world.
42 FLUOR SUSTAINABILITY REPORT 2008
Recognition and Awards
t Newest participant in the Occupational Safety and
Health Administration’s (OSHA) Voluntary Protection
Programs (VPP) Corporate Pilot. Fluor is one of only
seven companies in the United States to have been
chosen by OSHA for this prestigious program.
t National Safety Council’s Robert W. Campbell Award,
which recognizes organizations that demonstrate
how integration of environmental, health and safety
management into business operations is a cornerstone
of their corporate success. (Fluor Hanford)
t The Royal Society for the Prevention of Accidents’
2008 Order of Distinction, in recognition of Fluor
Limited’s (United Kingdom) safety record over the
past 17 years (1992 to 2008).
t Ranked fifth in Engineering News-Record magazine’s
list of Top 100 Green Design Firms.
t Energy and Environmental Excellence Award, which
honors significant contributions made toward
meeting global energy challenges through innovation
and technology, given by Hart Energy Publishing.
t Ten awards for “Meritorious Safety Performance”
from the National Petrochemical and Refiners
Association, recognizing companies that have
excelled in managing safe operations.
t ISO 14001 certification of ICA Fluor and its Industria
del Hierro Marine Platform & Shop Yard in Mexico.
t Naval Academy Public Works Department’s Safety
Service Contractor of the Year Award, based on
total work hours, job complexity and the numbers
of OSHA recordable incidents and lost work days.
(Academy Facility Maintenance)
t VCA/SCC recertification of Fluor Netherlands’ HSE
Management System for fifth consecutive time.
t VPP Star of Excellence (sixth consecutive year) and
Legacy of Stars Award (second consecutive year) at
U.S. Department of Energy’s Savannah River project.
t Power magazine’s “Top Plant” Award for the Fluorconstructed 242-megawatt power project in Eureka
County, NV, for Newmont Mining Corp.
GLOBAL SERVICES
Project Name: VARIOUS PROJECTS
FOR CONFIDENTIAL CLIENT
Client: LARGE ELECTRONICS
MANUFACTURER
Project Description:
Fluor assists clients with innovative, energy-efficient and environmental
conservation measures to reduce facility operating costs, annual budgets and
environmental wastes. In 2008, Fluor assisted a confidential client in the large
electronic manufacturing industry with a number of sustainability efforts.
2008 Key Sustainability Points:
t Assisted client in developing innovative water conservation concepts and
business cases to save over 4 million gallons of water and waste water
treatment per year, with a simple payback in less than four years.
t Assisted client in developing a revised sequence of operations for “free
cooling” with the flat plate heat exchangers on the chilled water system
in the facility’s central utility plant. The new sequence shut off multiple
1,000-ton chillers and cooled the building loads through flat plate
heat exchangers and the cooling tower condenser water loop. The new
sequence saved the client over $30,000 in two months.
t Assisted client with lessons-learned scenarios. Fluor worked closely with
the client’s energy team and recognized a trend in the variable frequency
drive (VFD) limitations in its Central Utility Plant. The trend would
not allow the distribution pumps to reduce their pumping horsepower.
Fluor completed a series of calculations and recommended to the
client to review and reset the VFD settings. Per the recommendations,
the client could achieve approximately $2 million per year in energy
savings at just one site.
FLUOR SUSTAINABILITY REPORT 2008 43
All of our employees
embrace Fluor’s
commitment to
sustainable endeavors.
Every worker on Fluor
projects is engaged
to help their clients
examine the energy
efficiency of their
facilities and determine
areas to reduce CO2
emissions. Through the
application of bestin-class technologies,
energy audits and other
measures, our company
offers customized
solutions that enhance
the execution of clients’
capital projects and
improve their existing
operations.
44 FLUOR SUSTAINABILITY REPORT 2008
GROWING A FOREST AND
THE POPULATION OF AN
ENDANGERED SPECIES, TOO.
The Bear Path Project.
Nocturnal, naturally timid and nearly extinct. Not the description one might ascribe to a bear. But the
Cantabrian brown bear, which once inhabited nearly all the mountains and sierras of the Iberian Peninsula,
is all these things. Human activity has practically wiped out the species. Now, ironically, it is human
activity that might just save it.
That, at least, is what the Community Relations Committee at Fluor’s Asturias operations in Spain is
working to accomplish. It all began simply enough. In 2008, the committee contacted Spain’s Fund for the
Protection of Wild Animals (FAPAS) to arrange an educational field trip for employees and their families
to the popular Bear Path, a protected area for the endangered bears that passes through the villages of San
Andrés, Perlavia and Trubia in northern Spain. Soon, however, the committee had bigger ideas. The same
type of development that had brought Fluor and its employees to the area, they learned, was threatening the
bears’ natural environment and, consequently, the bears themselves. It was time to take action. In continuing
discussions, the two groups crafted an additional collaboration. The result: Project+bears-CO2, an initiative to
battle climate change while providing a badly needed natural habitat and food supply for the bears.
In Proaza, a village near the Asturias operations, FAPAS planted a new forest of chestnut and cherry trees
that now carries the Fluor name, testimony to the company’s financing of the project. Incorporated in the
larger Bear Path area, Fluor Forest contains 250 tree specimens that will become biomass fixers, capturing
9.2 tons of CO2 annually while producing an average of 5,000 kilos of fruit each year for the bears.
“The principle objective of this project is to protect the bears, which made this especially attractive for our
funding, but the project actually gave us the opportunity to meet additional objectives,” says Javier Peleaz,
a senior designer in the Instrumentation department of Fluor Asturias, who has served on the Community
Relations Committee the past four years and led the team in 2008. He notes that Fluor’s funding of the
project is intended to encourage other entities to join.
“Not all companies here do things for the community – Fluor is truly a leader,” Peleaz observes. In addition
to contributing to protection for the bears, Spanish institutions and companies that elect to participate in
the Project+bears-CO2 initiative have the opportunity to compensate their CO2 emissions and calculate their
atmospheric impact on the project’s website.
It was the natural beauty of the area that captivated Fluor families on the Bear Path field trip, during
which they learned that only three brown bears are currently visible in that portion of the mountains. But
Peleaz, who describes the endangered bears as “one of the icons of the area,” says the new Fluor Forest is an
important step in helping stabilize and increase the local bear population. He adds, “This area is a natural
paradise – mountains, beach, forests and the bears. Through our work with FAPAS, we hope to sustain
the beauty and protect the environment of the area.” Fluor Asturias plans to continue its collaboration with
FAPAS and is exploring ways to involve more employees in the work.
Like the other seven members of the Fluor Asturias Community Relations Committee, Peleaz volunteers
his time for committee work. It’s especially rewarding for him; he was born and grew up in the area, and
his family was among those participating in the Bear Path field trip. Committee membership is one way he
can combine his career with his community service, and in the case of the Bear Path field trip, light up his
five-year-old daughter’s face. “She really loves the bears,” he says.
FLUOR SUSTAINABILITY REPORT 2008 45
Number of trees planted
250 trees
Species planted
Chestnut and cherry trees
CO2 tons compensated/year
9.2 tons CO2/year
Kilograms of fruit/year produced
5,000 kg fruit/year
Location of the plantation
Village of Proaza
“NOT ALL COMPANIES HERE DO THINGS FOR
THE COMMUNITY  FLUOR IS TRULY A LEADER.”
A new forest and
initiative in Proaza, Spain,
creates a habitat and
improves air quality for
Cantabrian brown bears.
46 FLUOR SUSTAINABILITY REPORT 2008
A GLOBAL LEADER WITH
LOCAL RESPONSIBILITIES.
Community & Social Service.
While our core business competencies are engineering, procurement,
construction and maintenance, service to the communities in
which we live and work is our privilege. Through our projects,
philanthropy and employee volunteerism, Fluor is dedicated to
building strong and sustainable communities and to having a
positive impact on those lives we touch.
Inspired by our corporate value of Teamwork, Fluor employees have
collectively given tens of thousands of hours in an effort to meet
the needs in their respective communities throughout the world.
When combined with our company’s annual financial commitment,
thousands of charitable organizations and schools benefit from
Fluor’s generosity and hard work each year.
However, our work in supporting communities is as strategic as it
is heartfelt. We begin by engaging with local leaders to determine
the areas of greatest need and continue this dialogue throughout
our company’s presence in a region. This engagement informs our
philanthropic and volunteer activities and facilitates our ability to
help improve the quality of life. When possible, we also collaborate
with our clients to increase the impact of our philanthropic efforts.
And our employees, through their personal volunteer time, ensure
that Fluor’s care is felt as much by those in need as by the agencies
and organizations that receive the company’s financial pledge.
Our dedication to community service is evident in our conduct
around the world. We build, in every sense, with a commitment
to supporting philanthropic programs, education initiatives and
charitable causes that provide enduring results.
Fluor Corporation and Fluor Foundation:
Doubling Philanthropic Efforts
From its earliest days, Fluor has practiced its belief of giving back.
More than half a century ago, the Fluor Foundation was formed and
since its inception has focused primarily on areas of need that address
long-term community stability and growth: human services, youth
programs and education. Acutely aware that we operate on a global
scale and share international responsibilities, Fluor and its employees
are also addressing environmental protection at the grassroots level.
In 2008, Fluor Corporation and the Fluor Foundation contributed
$7 million to community organizations, educational initiatives and
programs in 17 countries. Through the hundreds of organizations
we supported, hundreds of thousands of people received assistance.
2008 Community
Highlights
t $7 million in corporate contributions to
community organizations and education
around the world.
t More than 43,000 employee volunteer hours
toward 200 team service projects assisting
organizations and schools.
t 11,000 backpacks filled with school supplies
distributed to 75 schools and youth
organizations during the annual Fluor Global
Service Project – Building Futures.
t $3.04 million in employee contributions
pledged to United Way and health and human
service agencies.
t $218,000 in employee contributions to
universities and higher-education programs.
t 20,000 students in classrooms around the world
visited by Fluor engineers during Engineers Week.
Education: The Bedrock of Community Growth
Higher Education Support is Multifaceted
Preparing tomorrow’s workforce to meet future challenges is a key
to successful community building. Fluor’s long-term strategic
relationships with select universities and technical colleges around
the world, each nurtured by an assigned executive sponsor, address
this need. We provide annual grants to engineering and construction
programs, scholarships and support to student associations and
career centers. In 2008, among Fluor’s substantial grants were
those that funded a new master’s program at Clemson University for
Engineering Supply Chain & Logistics and the Fluor Program for
Construction Safety at the University of Florida. In total last year:
t Grants of more than $600,000 went to 14 U.S. universities.
t Universities in Canada, Chile, the Netherlands, the
Philippines, Poland, South Africa and Spain received
$233,000 in grant monies.
FLUOR SUSTAINABILITY REPORT 2008
Not content with simply making monetary donations to these schools,
Fluor goes much further in its support of higher education by engaging
directly with students and faculty. Our professionals teach courses as
guest lecturers, aid with curricula development and strategic planning
as members of college advisory boards, provide students real-world
experience through internships, and coach students on career development,
presentation skills and more to help them maximize their potential.
Scholarships to individual students are another major element of
Fluor’s education support. Specifically:
t Fluor’s annual scholarship program for children of company
employees, launched in 1981, has issued $10 million in
scholarships. In 2008, 141 awards went to employees’ children.
t Students at Job Corps Centers have been eligible for annual
Fluor Foundation scholarships since 2004. In 2008, $5,000
scholarships went to 13 students pursuing higher education
from centers operated by DEL-JEN, a Fluor subsidiary.
We also provide support for major higher-education initiatives – support
that can take the form not only of cash awards but also knowledge
sharing. For example, our company has pledged $200,000 for
equipment and renovation costs to the Forever LSU campaign, a
seven-year program to raise Louisiana State University to a new level of
excellence by focusing on increasing research and scholarly productivity
and the quality and competitiveness of its graduate and undergraduate
students. One major element of this sweeping initiative is the expansion
of the current Safety Research Laboratory. Fluor’s aid will help establish
a premier research incubator in health, safety & environmental (HSE)
matters and ergonomics in industrial construction – developing new
ways to work and build that are both smarter and safer. In symposiums
and professional development workshops, research findings will be
shared with industry HSE professionals. Meanwhile, we will provide
input, based on our own experience and knowledge, so the lab can best
meet and exceed HSE industry standards.
K-12 Education Lays the Foundation
The Fluor emphasis on engaging directly with students and teachers
extends to elementary and secondary programs as well. With an
interest in advancing science, math, engineering and technology at
the pre-university level, we support target programs at schools and
organizations in office locations. Among those receiving assistance:
t High school engineering and construction mentoring programs;
t Saturday science programs;
47
t Student science teacher internships at research labs;
t High school engineering and science academies;
t College preparatory programs;
t Math teacher training;
t Construction curriculum for high schools;
t Summer engineering camps;
t Student math competitions; and
t Science Center educational programs and exhibits.
Beyond financial aid, many programs receive the benefit of
knowledge and counsel from our engineers, who meet with students
and teachers and provide tutoring support. Last year alone:
t In the Philippines, Fluor donated computers to schools and
taught elementary school students basic word processing,
presentation and spreadsheet software skills through our “Basic
IT Literacy Program.”
t A panel of Fluor female engineers spoke to more than 100
young female students, ages 12 to 17, at the “Beauty and
Brains” conference in Calgary, Alberta, Canada, about career
possibilities in engineering and other technical fields and
encouraged them to pursue excellence in math and science.
t As part of Fluor’s international educational outreach during
Engineers Week, Fluor engineers led grade-school students in
hands-on learning and competitions.
Human Services and Youth Programs Have
International Presence
Fluor’s community support is guided by company values, but it is
executed at the local level to address the specific needs of each location
and take advantage of the knowledge and insights only locally
assigned employees can have. Aid goes largely to human services,
emergency relief and youth programs, although circumstances and
special needs can present unique opportunities for involvement.
Rising to the Challenge of Disaster Relief
Working globally, Fluor is keenly aware that natural disasters
observe no borders; neither do Fluor employees in their universal
response. In 2008, Fluor and our employees united to contribute
more than $185,000 to aid victims of the Chengdu earthquake in
China’s Sichuan Province, hurricanes along the U.S. Gulf Coast and
tornadoes in communities across the United States.
48 FLUOR SUSTAINABILITY REPORT 2008
Recognition
United Way’s Chairman Award for increasing employee
giving by 10%, having employee participation at a level
greater than 50% and $100 or more employee per capita
giving. (Greenville, SC, office)
Perhaps the most dramatic of these efforts was the overwhelming outpouring of support immediately following the 8.0 magnitude Wenchuan
earthquake that struck the People’s Republic of China in May 2008.
Fluor employees in the Shanghai office launched a local campaign to
raise funds for the relief efforts. Within a week, employees and Fluor
contributed $112,000 to the China Charity Federation, a United Way
member organization that worked with partner organizations to assess
and address long-term recovery and reconstruction needs.
Identifying a Special Need in the United States
The struggling global economy, continuing armed conflicts and multiple
tours of duty all put an enormous strain on U.S. military families
in 2008. Identifying a special need, Fluor formed a new initiative to
provide financial assistance to organizations and programs that assist
U.S. military personnel and their dependents. Contributions totaling
$115,000 were granted to organizations that aid wounded military
members, help their families and support re-employment programs.
Fluor Employees Live the Corporate Values
Another joint effort between Fluor and employees regularly benefits
educational institutions. In 2008, employees saw their donations of
$218,000 to 170 universities in Canada and the U.S. doubled through
the Fluor Foundation’s Matching Gifts to Higher Education program.
Employee Engagement Inspires Volunteerism
Our tradition of community service is very much part of the fabric of our
company, and employees at many of our locations around the world find
creative ways to share their time and resources to solve problems in their
respective communities. Their efforts have been channeled for more than
30 years through the Fluor Community Involvement Team program.
Employee teams annually engage in as many as 10 to 15 community
projects in each location that benefit hundreds of organizations each year.
Working together, these employee teams have:
t Constructed homes for Habitat for Humanity, Roof Over Chile,
and Gawad Kalinga in the Philippines;
t Delivered meals weekly to senior citizens;
®
t Built canned food structures for Canstruction , a North
American initiative to benefit local food banks;
While Fluor Corporation and the Fluor Foundation are building and
strengthening communities, the same fundamental values that guide
their work are embodied in employees’ efforts individually and in
teams everywhere Fluor has a presence. In fact, often the company
and employees join forces to achieve even greater results.
t Organized events and gift drives for orphanages;
Employee Giving Demonstrates Generosity
t Renovated and provided supplies for a preschool in
South Africa; and
For more than 55 years, Fluor has supported United Way and its
agencies and enhanced those efforts through the Fluor Foundation’s
match of employee donations at 50 cents on the dollar. During
the 2008/2009 campaign, the combined employee pledge of $3.04
million and the company contribution of $1.5 million totaled more
than $4.5 million for organizations in Canada, the Philippines,
Trinidad and the United States. Annually employee teams
coordinate the campaigns, inviting pledges, organizing fundraising
activities and volunteering with local United Way agencies.
Our Trinidad operation is just one story that illustrates what the
combined efforts of company and employees can accomplish. In
2008, Fluor Daniel South America became one of the contributing
companies to the United Way of Trinidad and Tobago. The Fluor
Trinidad office launched its first United Way Make-A-Difference
fundraising campaign in October and employed a variety of events
and challenges to raise awareness and participation.
t Participated in walks and cycling events, raising thousands
of dollars for local health organizations;
t Conducted charity golf tournaments that raised $170,000 for a
recovery program and another $50,000 for a homeless shelter.
Stories of employee engagement abound. For instance, in 2008, our
employees at the Sunoco-Toledo (Ohio) refinery project searched for a
community project that would benefit local neighborhood children and
showcase the engineering, procurement and construction talents of the
company. After reviewing many community project applications with
city officials, employees adopted Close Park in West Toledo, a community
and school gathering place that had deteriorated over the past 20 years.
Their plan: clean up the grounds, revitalize the park and design and
build a new playground structure. Donations from Fluor and the
equipment manufacturer, and countless volunteer hours logged over a
12-month period by our employees as well as those from several local
construction businesses, culminated in a neighborhood ribbon-cutting
celebration of the renewed park. The words on the park’s cornerstone
FLUOR SUSTAINABILITY REPORT 2008 49
Fluor employees in the
Philippines applied their
best skills to try to win
the company’s annual
Friendly Competition,
which is part of global
Engineers Week activities.
expressed the team’s vision for the park
and underscored the linking of Fluor’s
business with its passion for building
community: “The Stepping Stones of
Life Begin in the Heart of a Child.”
Global Projects Unite Fluor
Employee Efforts
From Trinidad to Toledo,
employees rally to address local
needs and participate in activities
specific to their location. But
they also join Fluor employees
around the world in company-wide
initiatives that make a difference.
Global Service Project
Building Futures, the Fluor annual
global service project now in its
eighth year, is all about impacting
– and improving – young lives. In
2008, the combined efforts of
employees in 29 locations collectively
touched the lives of more than 11,000
children. Mindful that studying, like
construction, requires the proper tools, employees provided students
with backpacks filled with school supplies and helped with school
facility renovations, as well as mentoring and educational initiatives.
Engineers Week
Creating interest among students in engineering careers is one goal
employees have in mind when they volunteer for activities associated
with the annual Engineers Week. During Fluor’s 2008 Discover
Engineering school outreach program, employees coordinated
student engineering activity days, visited schools, served as judges for
science and engineering fairs and held career days at company offices.
Thousands of students benefited.
A healthy competitive spirit takes flight in the Friendly Competition,
in which Fluor engineers and visiting university students test
their creativity and engineering skills by competing globally with
colleagues on a hands-on, timed design project. In 2008, more than
300 teams at 28 Fluor locations around the world participated, with
employees in our Gliwice, Poland, office earning first place.
Sustainable Green Community Programs
As a global citizen, Fluor engages in local programs that serve the
dual function of benefiting the environment and simultaneously
improving the communities in which we work. In 2008, Fluor
initiated a global survey of green initiatives occurring at our offices.
We are proud to report that nearly all of Fluor’s facility leads, along
with colleagues from all disciplines, are engaged in grassroots
voluntary green community activities that bring funds, supplies,
nature and well-being to scores of communities globally.
From Madrid to Mexico City and San Francisco to South Africa,
Sustainable Green Community Programs highlight Fluor’s social
responsibility, environmental awareness and local engagement.
The general categories for the programs encompass:
t Recycling programs that fund or otherwise support
community projects;
t Donations of used office furniture, equipment and supplies
to deserving organizations; and
t Habitat replenishment and/or preservation.
50 FLUOR SUSTAINABILITY REPORT 2008
“FLUOR IS DEDICATED TO BUILDING STRONG AND
SUSTAINABLE COMMUNITIES AND TO HAVING A POSITIVE
IMPACT ON THOSE LIVES WE TOUCH.”
The projects’ locations, specifics and donation recipients in 2008
covered a broad spectrum:
t San Juan, Puerto Rico – The Felipa Sánchez Elementary School,
located in Naranjito, received a surplus office photocopier.
t Santiago, Chile – Fundación San José, an adoption agency,
received 2,400 pounds of recycled paper to help fund its work
in supporting birth mothers, infants and adoptive parents.
t Shanghai, People’s Republic of China – Office furniture and
associated supplies were given to Fulin Wenwu Migrant School
and Shao Nian Meng Migrant School, both primary schools.
t New Delhi, India – Fluor donated newspapers to two
organizations. INDHA, an organization aimed at reducing
poverty in rural and semi-rural areas, used recycled newspapers
to make shopping bags, which avoids the use of plastic bags,
as well as provides income to local women. Literacy India, a
nonprofit organization that provides education and vocational
skills to underprivileged children and women with the goal
of making them self-sufficient, also received papers that were
recycled for funds.
t Madrid, Spain – Used toner cartridges were donated to Aldeas
Infantiles SOS, an international NGO that offers children a new
family and a stable home as the foundation for a productive life.
Aldeas recycles cartridges to secure funding for its programs.
t Tyler, Texas – An office-wide recycling program yielded
funds to support Meals on Wheels, the East Texas Crisis
Center and CASA Kids.
t Edmonton, Alberta, Canada – Toner cartridges are donated
for recycling, and the proceeds support the Edmonton Food
Bank. Recyclable bottles and cans are donated to Child Find.
t Gardena, California – Aluminum cans from the office are
recycled, and the proceeds were donated to Sempre Fi, an
organization supporting injured U.S. Marines.
t Concord, California – Computer equipment was donated
to Computers Recycling Center, a nonprofit organization
providing computers for educational purposes.
t Manila, The Philippines – Plumbing fixtures helped improve
the conditions for the Gawad Kalinga, meaning “to give care,”
facility. Its vision is to transform poverty-stricken slums into
self-sustaining communities. Its 777 Movement with Fluor
Philippines is targeting to build 700,000 homes in 7,000
communities in seven years (2010) nationwide. Additionally,
carpet tiles have been donated to Bukid Kabataan, an institution
that houses and educates approximately 60 boys and girls, seven
to 12 years old, who have been abused, orphaned or abandoned.
t London, England – The Marie Curie Cancer Center
received furniture, including a boardroom table and 10
chairs, six workstations, office chairs and various storage
cupboards and filing cabinets.
t Haarlem, The Netherlands – Used furniture was donated to
the De Waddenschool Elementary School.
t South Africa – The Progress Preschool in Secunda, the LEAP
School in Johannesburg and Unity College in Sandton all
received used office furniture. Porto Cabins donated to the
Progress Preschool serve as temporary classrooms while the
school is undergoing a major renovation.
t Calgary, Alberta, Canada – Centennial High School, the
city’s only high school with a pre-engineering program, received
used office furniture.
t San Francisco, California – Fluor employees joined its client
to “Save the Bay” by planting more than 650 native seedlings
on the eastern shore of the San Francisco Bay in the Eden
Landing Ecological Reserve.
t Mexico City, Mexico – ICA Fluor employees and families
planted 1,060 trees to support reforestation of the San Nicolas
Totolopan Ecological Park.
t Moscow, Russia – Co-sponsored by the World Wildlife Foundation,
Fluor sponsors Multyashka, the bison, and its natural habitat.
Fluor will continue to support and encourage our employees
globally to further develop their Sustainable Green Community
Programs. We are also developing new ways to share our green best
practices with facility leads and colleagues worldwide through our
internal knowledge management communities. We anticipate that
the act of engaging in community service through green initiatives
will expand as office initiatives are shared over this platform,
allowing a greater understanding of ongoing activities that can be
realized through engagement and action.
Fluor employees are energetic, self-motivated people who care
about improving the lives of others and enriching local communities.
Company philanthropic activity helps keep communities healthy
and prosperous and makes a positive difference in the quality
of life for everyone.
FLUOR SUSTAINABILITY REPORT 2008
51
It’s a family affair when
two young girls – the
daughters of ICA Fluor
employees – participate
in the planting of
more than a thousand
trees in Mexico’s San
Nicolás Totolopan
Ecological Park.
52 FLUOR SUSTAINABILITY REPORT 2008
VOLUNTEERING CAN BE THE MOST
REWARDING PART OF THE JOB.
The Building Futures Initiative.
In an earthquake-shattered province, children received them in a shipment from a far-off city. Inner-city elementary school pupils got
theirs from office workers a short drive and a world away. Preschoolers growing up in the shadow of oil-from-coal extraction plants
received a bonus of lunch boxes and juice bottles when theirs arrived. What item could hold such global appeal?
Look no farther than the shoulders of almost every student. Just as music is the universal language, so backpacks are the universal
school supply – and a global initiative for Fluor employees. Completing its eighth year, Fluor’s Building Futures initiative involved
29 Fluor locations in 2008, and the combined efforts of employees touched the lives of more than 11,000 children with a variety
of projects. Building Futures focuses on disadvantaged children by delivering school supplies and other much-needed items and by
providing mentoring opportunities as part of Fluor’s involvement in these schools.
“Our company specializes in designing and building. Our backpack project is designed to build futures. It’s an easily understood
concept that employees relate well to and can support. After all, every employee was once a student, regardless of what income level
or part of the world he or she is from,” explains Niki Mazuca of Community Relations in Fluor’s Houston, TX, office. Her summary
resonates with colleagues everywhere.
In Houston, where approximately 50 employee volunteer coordinators received a toolkit and orientation prior to launching the 2008 project
themed “Backpacks for Smarties,” Mazuca describes the response as “overwhelmingly positive.” Originally, plans called for supporting only
one school, but employee donations filled a total of 1,550 backpacks – enough for two schools – and left funds to spare for extra supplies.
Houston’s idea of holding a backpack-stuffing party traveled across continents and oceans to Fluor’s Shanghai office in the People’s
Republic of China, where employees responded through the Building Futures initiative to a national appeal to help victims of
catastrophic earthquakes. Kristin Glavitsch, communications specialist, and Rachel Zhang, office service specialist, are members of
the office charity committee and coordinated the project – including the backpack-stuffing party, which in 30 minutes completed 350
packs, enough for every student in the Jin Ping primary school in Gansu Province.
For Zhang, a Shanghai native, employee response to the project was especially rewarding. “In China, charitable organizations are
newly established, and charity work here is in various stages of development,” she explains. “But the whole country focused on the
earthquake victims, and in one week the nation gave more to charity than it gave in the entire previous year.”
Fluor employees from all area projects reflected that spirit. “Within one week we met our goal, but the donations just kept coming,”
Glavitsch recalls, crediting the team of coordinators representing every department and project site and the extraordinary generosity of
employees. “We were astonished at how quickly people responded.” The extra funds went to purchase books for a new school library.
Half a world away, in South Africa, Fluor employees were responding to the backpack project with similar enthusiasm. Refilwe Rakolota,
Diana Seeley and Shannon Nesbitt spearheaded the project. Wally Gardiner, general manager of Administration, who has been involved
with the community relations efforts in South Africa since 1991, commends their achievements. “We have been able to reach a much
bigger and wider volunteer audience. This has resulted in a far greater number of volunteers coming forward than ever before.”
Backpacks, lunch boxes and juice bottles went to all 250 students at the Progress Preschool in eMbalenhle, Secunda. Encouraged by
this accomplishment, the Community Relations team will expand the project to two schools in 2009.
Students, it seems, are not the only beneficiaries of Building Futures. Rakolota, who coordinated volunteer initiatives and the
administration required, says, “Working on the project has been a fulfilling experience for me as it added to my own personal growth
and has taught me how to think ahead and make plans for everybody involved. I will do it for as long as I work for Fluor.”
FLUOR SUSTAINABILITY REPORT 2008 53
“OUR COMPANY SPECIALIZES IN
DESIGNING AND BUILDING.
OUR BACKPACK PROJECT IS
DESIGNED TO BUILD FUTURES.”
Smiles are bright
each year when Fluor
employees around the
world give backpacks
filled with supplies
to disadvantaged
elementary school
children. This Building
Futures initiative helped
more than 11,000
children in 2008.
54 FLUOR SUSTAINABILITY REPORT 2008
ABOVEBOARD IS WHERE OUR
BOARD LIKES TO KEEP THINGS.
Governance.
Good business practices, transparency in corporate financial reporting
and the highest levels of corporate governance are essential components
of Fluor’s success. The company’s corporate governance standards
promote the principles of integrity, transparency and accountability
and are supported by an independent and fully informed Board. We
have a long history of judiciously managing our business, running our
operations not only in accordance with applicable laws and regulations
but also within the spirit of those laws and regulations.
Fluor ensures that its Board of Directors is independent of
management and accountable to the company and its shareholders.
Consistent with this belief, today at Fluor:
t Excluding the Board’s chairman, who also serves as Fluor’s chief
executive officer, all Board members are independent within
the meaning of NYSE rules and Fluor’s Corporate Governance
Guidelines. They meet regularly (at least quarterly) without
members of management present. The Board believes that it
is in the best interests of Fluor and its shareholders for Alan
Boeckmann to serve as both chairman and chief executive officer.
t The Board’s Governance Committee conducts a review each
February and makes an affirmative determination regarding
the independence of its directors to ensure they have no
material relationship with Fluor (either directly, or as a partner,
shareholder or officer of an organization that has a relationship
with Fluor). In addition, Board members are expected to
promptly disclose any situation that involves, or may reasonably
be expected to involve, a conflict of interest with Fluor.
t Fluor’s lead independent director is appointed for a three-year
term by the independent directors. This director acts as a
liaison between the independent directors and management and
coordinates with the chairman regarding Board of Directors
meeting agendas, schedules and information flow. In addition, the
lead independent director makes himself available for consultation
and communication with shareholders, as appropriate.
t Board committees that address auditing, compensation,
corporate governance and nominating functions are comprised
solely of independent directors.
t Committee charters clearly establish the committees’ roles and
responsibilities and are reviewed annually by each committee.
t Corporate Governance Guidelines are regularly reviewed and
updated in response to changing regulations and stakeholder
concerns. For example, Fluor’s Bylaws were updated in 2007 to
provide for majority voting in uncontested director elections.
FLUOR’S SUSTAINABILITY COMMITTEE
Fluor’s Sustainability Committee is charged with
supporting the company’s commercial success in
ways that honor its ethical values and respect people,
communities and the natural environment.
Formed in 2008 with representation from the highest
management levels of the corporation, the Sustainability
Committee focuses on all issues related to sustainability; social
responsibility; the company’s policies, practices and progress
on social, technical, human rights, employment, ethical,
charitable, political, environmental issues; and other matters
of significance to the company’s performance and reputation.
Included in, but not limited to, these responsibilities are:
t Review the social, ethical and environmental impacts of
the company’s policies and practices and set standards for
social, ethical and environmental practices.
t Report on Fluor’s sustainability performance indicators
through its annual report, website information and other
advertising practices.
t Consider and endorse initiatives to enhance Fluor’s
sustainable business practices and reputation as a
responsible corporate citizen.
t The Organization & Compensation Committee annually
reviews Fluor’s compensation philosophy and objectives and sets
targets for the executive compensation programs.
t The Board and its committees annually conduct self-evaluations
to assess their effectiveness.
We continually strive to develop corporate governance policies and
practices that support our commitment to integrity, transparency and
accountability. The company will continue to consider appropriate
shareholder recommendations for director and other proposals and
take any steps the Board believes will further improve our standards,
controls and accountabilities. As additional regulations and
recommendations on corporate governance are announced, we will
continue to make required changes to our policies.
For more information about Fluor’s Corporate Governance
Guidelines, Bylaws and its Board’s composition, committees and
independence, visit our website at
http://www.fluor.com/sustainability/corporate_governance/
Pages/default.aspx.
FLUOR SUSTAINABILITY REPORT 2008 55
From left to right, front row:
Alan L. Boeckmann
Chairman of the Board
and Chief Executive Officer;
Director of Burlington Northern Santa Fe
and BHP Billiton Limited (2001) (1)
Dean R. O’Hare
Retired Chairman and Chief Executive Officer
of The Chubb Corporation;
Director of AGL Resources
and H.J. Heinz Company (1997) (1) (2) (3)
Peter J. Fluor
Fluor’s lead independent director;
Chairman and Chief Executive Officer
of Texas Crude Energy, Inc.;
Director of Anadarko Petroleum
and Cameron International Corporation
(1984) (1) (3) (4)
Dr. Suzanne H. Woolsey
Former Chief Communications Officer
for the National Academies;
Trustee of Van Kampen Funds, Inc.
(2004) (2) (3)
Back row:
Dr. Peter S. Watson
President and Chief Executive Officer
of Dwight Group (2005) (3) (4)
Admiral Joseph W. Prueher
U.S. Navy (retired); Professor and
Senior Advisor, Stanford University;
Former U.S. Ambassador to
the People’s Republic of China;
Director of Emerson Electric Co.
and DynCorp International Inc. (2003) (3) (4)
Kent Kresa
Chairman Emeritus and former Chairman
and Chief Executive Officer
of Northrop Grumman Corporation;
Director of Avery Dennison Corporation,
General Motors Corporation
and MannKind Corporation (2003) (1) (2) (4)
Ilesanmi Adesida
Dean of the College of Engineering,
University of Illinois at Urbana-Champaign
(2007) (2) (4)
James T. Hackett
Chairman of the Board,
President and Chief Executive Officer
of Anadarko Petroleum Corporation;
Director of Halliburton Company
(2001) (3) (4)
Peter K. Barker
Retired Partner at Goldman Sachs & Company;
Director of Avery Dennison Corporation
and GSC Investment Corp. (2007) (2) (4)
Vilma S. Martinez
Partner at the law firm
of Munger, Tolles & Olson;
Director of Burlington Northern Santa Fe
Corporation (1993) (2) (3)
Years in parentheses indicate the year each director was elected to the board. (1) Executive Committee – Alan L. Boeckmann, Chairman; (2) Audit Committee – Kent Kresa,
Chairman; (3) Governance Committee – Dean R. O’Hare, Chairman; (4) Organization and Compensation Committee – Peter J. Fluor, Chairman
56 FLUOR SUSTAINABILITY REPORT 2008
GRI INDEX.
Fluor is committed to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines, which have informed the
development of this report. For this 2008 report, we have used the GRI “G3” Guidelines and compiled the report according to a selfreported GRI Application Level B.
Global Reporting
Initiative (GRI)
Criterion Number
Description
Section & Page Number(s)
Strategy & Analysis
1.1 & 1.2
Statement from the most senior decision maker of the organization about the relevance
of sustainability to the organization and its strategy. Sustainability strategy and analysis,
with description of key impacts, risks and opportunities.
A Message from the CEO, Pages 6-7
Organizational Profile
2.1, 2.2, 2.3, 2.4
& 2.8
Name of the organization. Primary brands, products and/or services. Operational structure of the
organization. Location of organization’s headquarters. Scale of reporting organization.
About the Company, Page 4
2.5, 2.6, 2.7
& 2.9
Number of countries where the organization operates. Nature of ownership. Markets served.
Significant changes during reporting period.
Appendix
Awards received in the reporting period.
External awards listed in respective
sections on Pages 16, 28, 42 & 48;
internal awards listed in Appendix
2.10
Report Parameters
3.1-3.13
Reporting period. Reporting cycle. Contact point for questions. Process for defining report
content. Report boundary and limitations. Basis for reporting on other entities. Data measurement
techniques and bases of calculations. Locations of standard disclosures. External assurance of report.
About the Report, Pages 2-3
Governance, Commitments and Engagement
4.1, 4.2, 4.6
& 4.10
Governance structure of the organization. Indicate whether the chair of the highest governance body
is also an executive officer. Processes in place for the highest governance body to ensure conflicts
of interest are avoided. Processes for evaluating the highest governance body’s own performance.
Governance, Page 54
4.3
For organizations that have a unitary board structure, state the number of members of the highest
governance body that are independent and/or non-executive members.
Governance, Page 54
4.4
Mechanisms for interaction with and feedback to highest governance body.
Governance, Page 54
Linkage between compensation for members of the highest governance body, senior managers
and executives (including departure arrangements) and the organization’s performance
(including social and environmental performance).
Available in company’s Annual
Proxy Statement, online at:
http://investor.fluor.com/phoenix.
zhtml?c=124955&p=irol-reportsAnnual
Process for determining the qualifications and expertise of the members of the highest governance
body for guiding the organization’s strategy on economic, environmental, and social topics.
Available in company’s Corporate
Governance Guidelines, online at:
http://www.fluor.com/sustainability/
corporate_governance/Pages/
corporate_governance_documents.aspx
Internally developed statements of mission or values, codes of conduct, and principles relevant
to economic, environmental, and social performance and the status of their implementation.
Explain the degree to which these:
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t 3FMBUF UP JOUFSOBUJPOBMMZ BHSFFE TUBOEBSET
All sections of report
4.5
4.7
4.8
FLUOR SUSTAINABILITY REPORT 2008
Global Reporting
Initiative (GRI)
Criterion Number
Description
Section & Page Number(s)
4.9
Procedures of the highest governance body for overseeing the organization’s identification and
management of economic, environmental, and social performance, including relevant risks
and opportunities, and adherence or compliance with internationally agreed standards,
codes of conduct, and principles. Include frequency with which the highest governance body
assesses sustainability performance.
Available in company’s Corporate
Governance Guidelines, online at:
http://www.fluor.com/sustainability/
corporate_governance/Pages/
corporate_governance_documents.aspx
Ethics & Compliance, Page 14
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the
organization. Article 15 of the Rio Principles introduced the precautionary approach. A response
to 4.11 could address the organization’s approach to risk management in operational planning or the
development and introduction of new products.
4.12
Externally developed economic, environmental and social principles or other initiatives to which the
organization subscribes or endorses.
Ethics & Compliance, Page 12
4.13 & 4.14
Memberships in associations (such as industry associations) and/or national/international advocacy
organizations. List of stakeholder groups engaged by the organization.
Appendix
4.15 & 4.16
Identification and selection of stakeholders with whom to engage. Approaches to engagement.
Stakeholder Engagement, Pages 10-11
4.17
Key topics raised through stakeholder engagement and organization’s response.
Stakeholder Engagement, Pages 10-11
Health, Safety & Environmental
EN1
Materials used by weight or volume.
Did not report
EN2
Percentage of materials used that are recycled input materials.
Did not report
EN3, EN4,
EN16, EN17
& EN19
Direct energy consumption by primary source. Indirect energy consumption by primary source.
Total direct and indirect greenhouse gas emissions by weight. Other relevant indirect greenhouse gas
emissions by weight. Emissions of ozone-depleting substances by weight.
Partial Disclosure;
Environment, Page 38
EN5, EN18
& EN28
Energy saved due to conservation and efficiency improvements. Initiatives to reduce greenhouse gas
emissions and reductions achieved. Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with environmental laws and regulations.
Environment, Pages 37-39
Initiatives to provide energy-efficient or renewable energy-based products and services,
and reductions in energy requirements as a result of these initiatives.
Environment, Pages 40-41;
illustrated in Project Profiles,
Pages 36, 39-42
EN7 & EN26
Initiatives to reduce indirect energy consumption and reductions achieved. Initiatives to mitigate
environmental impacts of products and services, and extent of impact mitigation.
Environment, Pages 38-40
EN8
Total water withdrawal by source.
Did not report
EN9
Water sources significantly affected by withdrawal of water.
Did not report
EN10
Percentage and total volume of water recycled and reused.
Did not report
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas.
Did not report
EN12
Description of significant impacts of activities, products, and services on biodiversity
in protected areas and areas of high biodiversity value outside protected areas.
Did not report
EN13
Habitats protected or restored.
Did not report
EN6
57
58 FLUOR SUSTAINABILITY REPORT 2008
Global Reporting
Initiative (GRI)
Criterion Number
Description
Section & Page Number(s)
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity.
Did not report
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas
affected by operations, by level of extinction risk.
Did not report
EN20
NOx, SOx, and other significant air emissions by type and weight.
Did not report
EN21
Total water discharge by quality and destination.
Did not report
EN22
Total weight of waste by type and disposal method.
Did not report
EN23 & EN29
Total number and volume of significant spills. Significant environmental impacts
of transporting products and other goods and materials used for the organization’s operations,
and transporting members of the workforce.
Environment, Page 39
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under
the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported
waste shipped internationally.
Did not report
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly
affected by the reporting organization’s discharges of water and runoff.
Did not report
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
Did not report
EN30
Total environmental protection expenditures and investments by type.
Did not report
Human Rights
HR1
Percentage and total number of significant investment agreements that include human rights
clauses or that have undergone human rights screening.
Did not report
HR2
Percentage of significant suppliers and contractors that have undergone screening
on human rights and actions taken.
Getting Things Right, Page 17
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights
that are relevant to operations, including the percentage of employees trained.
Did not report
HR4
Total number of incidents of discrimination and actions taken.
Did not report
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining
may be at significant risk, and actions taken to support these rights.
Employees & Workplace, Pages 28-29
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken to
contribute to the elimination of child labor.
Employees & Workplace, Page 28
HR7
Operations identified as having significant risk for incidents of forced or compulsory labor,
and measures taken to contribute to the elimination of forced or compulsory labor.
Employees & Workplace, Pages 28-29
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning
aspects of human rights that are relevant to operations.
Did not report
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken.
Employees & Workplace, Page 28
FLUOR SUSTAINABILITY REPORT 2008 59
Global Reporting
Initiative (GRI)
Criterion Number
Description
Section & Page Number(s)
Labor Practices and Decent Work
Total workforce by employment type, employment contract, and region.
Employees & Workplace,
Partial Disclosure, Page 22
LA2
Total number and rate of employee turnover by age group, gender, and region.
Did not report
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by major operations.
Did not report
LA4
Percentage of employees covered by collective bargaining agreements.
Did not report
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is
specified in collective agreements.
Did not report
LA6 & LA8
Percentage of total workforce represented in formal joint management-worker health and safety
committees. Education, training, counseling, prevention, and risk-control programs in place to assist
workforce members, their families, or community members regarding serious diseases.
Health & Safety, Page 35
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of
work-related fatalities by region.
Health & Safety, Page 34
LA9
Health and safety topics covered in formal agreements with trade unions.
Health & Safety, Page 36
LA10
Average hours of training per year per employee by employee category.
Did not report
LA11
Programs for skills management and lifelong learning that support the continued employability
of employees and assist them in managing career endings.
Employees & Workplace, Pages 21-27
LA12
Percentage of employees receiving regular performance and career development reviews.
Employees & Workplace, Page 26
LA13
Composition of governance bodies and breakdown of employees per category according to gender,
age group, minority group membership, and other indicators of diversity.
Did not report
LA14
Ratio of basic salary of men to women by employee category.
Did not report
LA1
Society
SO1
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts
of operations on communities, including entering, operating, and exiting.
Did not report
SO2
Percentage and total number of business units analyzed for risks related to corruption.
Ethics & Compliance, Page 14
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures.
Ethics & Compliance, Page 15
SO4
Actions taken in response to incidents of corruption.
Ethics & Compliance, Page 16
SO5
Public policy positions and participation in public policy development and lobbying.
Did not report
SO6
Total value of financial and in-kind contributions to political parties, politicians,
and related institutions by country.
Did not report
60 FLUOR SUSTAINABILITY REPORT 2008
Global Reporting
Initiative (GRI)
Criterion Number
Description
Section & Page Number(s)
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly
practices and their outcomes.
Did not report
SO8
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations.
Did not report
Product Responsibility
PR1
Improvement assessments of health and safety impacts of products and services.
Health & Safety, Page 35
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning
health and safety impacts of products and services, by type of outcomes.
Does not apply
PR3
Type of product and service information required by procedures, and percentage of significant
products and services subject to such information requirements.
Does not apply
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning
product and service information and labeling, by type of outcomes.
Does not apply
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Did not report
Adherence to laws related to marketing communications, including advertising, promotion and
sponsorship. Total number of incidents of non-compliance with laws concerning marketing
communications. Total number of substantiated complaints regarding breaches of customer privacy
and losses of customer data. Monetary value of significant fines for non-compliance with laws
concerning the provision and use of products and services.
Appendix
PR6, PR7, PR8
& PR9
Economic
EC1
Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, donations and other community investments, retained earnings,
and payments to capital providers and governments.
Community & Social Service, Page 46
EC2
Financial implications and other risks and opportunities for the organization’s activities
due to climate change.
Did not report
EC3
Coverage of the organization’s defined benefit plan obligations.
Employees & Workplace, Page 26
EC4
Significant financial assistance received from government.
Did not report
EC5
Range of ratios of standard entry-level wage compared to local minimum wage
at significant locations of operation.
Did not report
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant
locations of operation.
Getting Things Right, Page 17
EC7
Procedures for local hiring and proportion of senior management hired from
the local community at significant locations of operation.
Did not report
EC8
Development and impact of infrastructure investments and services provided primarily for public
benefit through commercial, in-kind, or pro bono engagement.
Community & Social Service, Page 50
EC9
Understanding and describing significant indirect economic impacts,
including the extent of impacts.
Community & Social Service,
Pages 30 & 46-50
FLUOR SUSTAINABILITY REPORT 2008
61
GRI APPENDIX.
Organizational Profile (GRI 2.1-2.10)
2.5 Countries Where the Organization Operates
The company’s major offices and project operations are located in Afghanistan, Argentina,
Australia, Canada, Chile, China, Czech Republic, Dominican Republic, Germany, India,
Indonesia, Iraq, Ireland, Jeddah, Kazakhstan, Kuwait, Madagascar, Mexico, the Netherlands,
Norway, Peru, the Philippines, Poland, Portugal, Puerto Rico, Qatar, Russia, Saudi Arabia,
Singapore, South Africa, Spain, Thailand, Trinidad & Tobago, United Arab Emirates, United
Kingdom and United States.
2.6 Nature of Ownership and Legal Form
Fluor Corporation is a public corporation listed on the New York Stock Exchange. As of
December 31, 2008, shareholders that own 5 percent or more of Fluor outstanding common
stock are Barclays Global Investors, N.A. (5.6%) and Capital Group International, Inc. (5.0%).
A complete listing of Fluor’s subsidiaries is included in Exhibit 21 to the company’s Form 10-K
filed with the U.S. Securities and Exchange Commission.
2.7 Markets Served
Fluor serves governments and leading commercial clients, who serve consumers, across the
following industry sectors:
1. Oil & Gas, including chemicals & petrochemicals, gas processing, liquefied natural gas (LNG),
gasification, gas-to-liquids, integrated gasification combined cycle, heavy oil upgrading, oil
sands, hydrocarbon transportation/pipelines, onshore & offshore oil and gas production,
petroleum refining, and polysilicon. Major operations are active in Argentina, Canada,
China, Czech Republic, Germany, India, Kazakhstan, Kuwait, Mexico, Netherlands, Norway,
Philippines, Poland, Portugal, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Spain,
Thailand, Trinidad & Tobago, United Arab Emirates, United Kingdom and United States.
2. Industrial & Infrastructure, including manufacturing, life sciences, mining, metals,
commercial & institutional, telecommunications, transportation, and renewable energy.
Major operations are active in Australia, Canada, Chile, China, Dominican Republic,
Germany, Ireland, Jeddah, Madagascar, Netherlands, Peru, Puerto Rico, South Africa,
United Arab Emirates, United Kingdom and United States.
3. Global Services, including operations & maintenance; plant engineering & construction;
turnarounds & outages; specialty services; facility management; procurement services;
equipment, tools & fleet services; and contract staffing. Major operations are active in the
United States, Iraq, Mexico, Indonesia and Australia.
4. Government , including contingency operations, service/base operations, nuclear
operations, nuclear remediation and design/build. Major operations are active in
Afghanistan, Iraq, Kuwait and United States.
5. Power, including solid-fueled, gas-fueled/integrated gasification combined cycle, plant
betterment, nuclear new build, and renewable energy. Major operations are active in South
Africa, Spain, United Kingdom and United States.
2.9 Significant Changes in Size, Structure and Ownership
Fluor experienced no significant changes in size and structure during 2008. The company
acquired two small private engineering companies in Europe, UNEC Engineering N.V. of
Antwerp, Belgium, and Europea de Ingenieria y Asesoramiento of Tarragona, Spain, which both
join its Global Services business group.
On June 16, 2008, Fluor issued a two-for-one stock split, doubling the number of shares of
common stock outstanding from 88 million to approximately 176 million.
With one inside director and 10 non-employee directors, Fluor’s Board of Directors is
independent from management and accountable to the company and its shareholders. Peter
Fluor continues to serve as the Board’s lead independent director.
Senior-level personnel changes included the retirements of Jeff Faulk, senior group president,
and Larry Fisher, chief legal officer and secretary. Carlos Hernandez was appointed in 2007
to succeed Mr. Fisher, and Glenn Gilkey was promoted to senior vice president of Human
Resources and Administration, succeeding Steve Gilbert, who retired in early 2009.
Office changes involved opening a new regional office in Anchorage, Alaska, and expanding
office operations in Buenos Aires, Argentina, and Singapore.
2.10 Internal Award Recognitions for HSE and Project Safety Milestones
Fluor Star Awards (Number of Safe Hours Worked), with 5 Stars being the highest award
t 5-Star
Frito-Lay Sunchips & Tostitos Scoops, Perry, GA (100,000)
t 5-Star
RasGas COP PMT RL(3) (380,000)
t 5-Star
Astaldi RasGas RL(3) Common Offplot (1,100,000)
t 5-Star
Teyseer / RasGas RL(3) Common Offplot (1,000,000) (2,000,000)
t 5-Star
ESS / RasGas RL (3) Common Offplot (500,000) (750,000)
t 5-Star
Shaqab Abela / RasGas RL(3) Common Offplot (500,000)
t 5-Star
NSN / RasGas RL(3) Common Offplot (10,600,000)
t 5-Star
CBI / RasGas RL(3) Common Offplot (2,500,000)
t 5-Star
Oak Grove Power (750,000)
t 5-Star
SCE&G Wateree (100,000)
t 5-Star
Houston Office (22,000,000) (27,000,000)
t 5-Star
BG Poinsettie NCMA-Trinidad (500,000)
t 5-Star
IBM RTP (4,000,000)
t 5-Star
BP Gelsenkirchen Projects, Germany (500,000)
t 5-Star
IBM Boulder, CO (3,000,000)
t 5-Star
IBM Tucson (100,000)
t 5-Star
Jeddah Municipality (500,000)
t 5-Star
ACP (American Centrifuge Plant) (100,000)
t 5-Star
Fluor/Igoda (1,500,000)
t 5-Star
St. Clair Energy Centre (500,000)
t 5-Star
Miller Steam Plant (250,000)
t 5-Star
St. Clair Energy Centre (500,000)
t 5-Star
SCE&G Williams Station (100,000)
t 5-Star
Gorgas Steam Plant (250,000)
t 5-Star
Greenville Office (3,500,000)
t 5-Star
Chevron Pacific Indonesia (20,000,000)
t 5-Star
Genesys NRTS Project (1,000,000)
t 5-Star
Moses Lake 3.0 Expansion (1,000,000) (2,000,000)
t 5-Star
Bergen Op Zoom / Rotterdam Office (5,000,000)
t 5-Star
ConocoPhillips San Francisco Refinery (1,000,000)
t 5-Star
Fluor Strategic Environmental – Alcoa Warrick (1,000,000)
t 5-Star
SCE&G Williams Station (250,000)
t 5-Star
KU SO2 Compliance, Ghent, KY (500,000)
t 5-Star
Oconee Nuclear Station Tornada / HELB (100,000)
t 5-Star
TXU Energy Martin Lake (500,000)
t 5-Star
Oregon Bridge Delivery Partners (1,500,000)
t 5-Star
Wood River Borger Project (100,000)
t 5-Star
Fluor / NRG – Big Cajun (250,000)
t 5-Star
Tasnee PP Expansion Project – Construction (1,500,000)
t 5-Star
BP Texas City (1,000,000)
t 5-Star
NOMEX® Expansion & ICL (500,000) (750,000)
t 5-Star
Jeddah Municipality (750,000)
t 5-Star
Frito-Lay All Projects (250,000)
t 5-Star
Kentucky Utilities SO2 Compliance (750,000)
t 4-Star
AMB Kentz / RL (3) RasGas (2,800,000)
t 4-Star
RasGas RL (3) Common Offplot (20,300,000)
t 4-Star
Houston Office (70,000,000) (76,000,000)
t 4-Star
San Bartolome Silver Project (3,000,000) (4,000,000)
t 4-Star
Fluor Strategic Environmental – Alcoa Warrick (1,750,000)
t 4-Star
NSH/RL (3) Common Offplot (24,000,000)
t 4-Star
RasGas / RL (3) Common Offplot Projects (38,000,000)
t 4-Star
3.0 Moses Lake Expansion (3,000,000)
t 3-Star Amgen AML New Expansion Project (1,000,000)
t 3-Star San Bartolome Silver Project (2,000,000) (5,000,000) (6,000,000)
t 3-Star AMECO Worldwide Operations (20,000,000)
t 3-Star Functional Organization Fluor Hanford (2,000,000)
62 FLUOR SUSTAINABILITY REPORT 2008
t
t
t
t
t
t
t
t
t
t
t
3-Star
3-Star
3-Star
2-Star
2-Star
2-Star
2-Star
2-Star
2-Star
2-Star
1-Star
Alcoa Warrick Power Plant (2,000,000)
CBI / RL (3) Common Offplot (3,500,000)
Shaqab Abela / RL (3) Common Offplot (750,000)
Petrotrin C5/C6 Isomerisation (1,000,000)
Moses Lake Expansion (1,500,000)
Habshan Gas Complex (20,000,000)
Lockheed Martin Fluor Hanford (11,000,000)
AML Expansion Project (2,000,000)
Amgen AML New Expansion Project (2,500,000)
Alcoa/Fluor Alliance (1,000,000)
Waste Stabilization & Disp/Fluor Hanford (2,000,000) (3,000,000)
Safety Excellence / Million-Plus Awards (Number of Safe Hours Worked)
The Fluor Safety Excellence Awards are reserved for Million Plus safe work-hours with no
injury or illness resulting in a DART-L case.
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
Fluor Hanford – K-Basins Closure, Richland (4,000,000)
2007 Moses Lake Expansion (1,000,000)
Tennessee Eastman (6,000,000)
IBM Austin, TX (3,000,000)
Fluor Hanford – Fast Flux Test Facility (1,000,000)
KU SO2 Compliance, Ghent, KY (3,000,000)
Habshan Gas Complex Expansion (20,000,000)
Moses Lake Expansion (1,500,000)
Greenville Office (45,000,000)
Tripatra Fluor Consortium (20,000,000)
FGG Construction Affiliates Fluor Hanford (1,000,000)
Moses Lake Expansion (1,000,000)
Bergen Op Zoom / Rotterdam Office (5,000,000)
TS Power Project (3,000,000)
Moses Lake Expansion (2,000,000)
Hazelwood – International Power (2,000,000)
Oak Grove Power Project, Franklin, TX (5,000,000)
Moses Lake Expansion Project (3,000,000)
Frito-Lay All Projects (1,000,000)
Kentucky Utilities SO2 Compliance (4,000,000)
Certificate Awards (Number of Safe Hours Worked)
Fluor Certificate Awards are reserved for safe work-hour achievements that are less than one
million safe work hours with no injury or illness resulting in a DART-L case.
t
t
t
t
t
t
t
t
t
ISAR Project (500,000)
BP Gelsenkirchen Projects, Germany (500,000)
Connect Project for London Underground (1,000,000)
ISAR Project (1,000,000)
Tripatra Fluor Consortium (20,000,000)
IBM Boulder (3,500,000)
Fluor Rail Services-Dampier, WA (750,000)
Jeddah Municipality Project (750,000)
Alcoa/Fluor Alliance, TN Location (1,000,000)
Silver Cross / Bronze Cross Awards
Silver – The Silver Safety Cross Award recognizes those employees who have acted in
a life-saving manner and assisted others in distress either on or off the job.
t
t
t
t
t
t
t
t
t
t
Lauren Di Giovanni – NE Regional Office, Mt. Laurel, NJ
Mark Bellamy – CETAC II TO 16 Bragram Barracks
Oliver Brooks – Miller Power Plant, AL Power, Quinton, AL
Heath Tidwell – Miller Power Plant, AL Power, Quinton, AL
Charles Scott – Miller Power Plant, AL Power, Quinton, AL
Dexter L. Bullard – SCE&G Wateree, Eastover, SC
Sayardeen Mohammed – Sugar Land Office
Augustin Fuentes – AMECO Mexico
Luis Perez – Luminant Dallas
Ted Holy – Sugar Land Office
Bronze – The Bronze Safety Cross Award is awarded to employees who have been involved
in an accident or incident where serious injury was avoided through the use of proper
personal protective equipment.
t Michael O. Simpson – Luminant Martin Lake
Governance, Commitments and Engagements (GRI 4.12-4.17)
4.13 Membership in Associations and Advocacy Organizations
Listed below are the principal associations and initiatives with which Fluor is
involved in the area of sustainability:
t International Organization for Standardization (ISO), 9000 and 14001, Switzerland
t Transparency International, Germany
t U.S. Green Building Council, USA
t World Economic Forum; “CEO Climate Policy Recommendations to G8 Leaders” Initiative;
Global Risk Network; Global Agenda Councils on Corruption and Urban Management; and
leadership of the Partnering Against Corruption Initiative, Switzerland
t Business Ethics Leadership Alliance, a partnership with Ethisphere Institute
t Construction Industry Institute’s Sustainability Community of Practice (chair) and
Sustainable Design and Construction on Industrial Projects Initiative (participating member)
t Mary Kay O’Conner Process Safety Center, United States
4.14 Stakeholders
t
t
t
t
t
t
t
t
Clients
Employees, union organizations
Future generations, environmental interests
Institutions, governments, legislators
Non-governmental organizations
Shareholders
Society at large, communities
Subcontractors, suppliers, business associations
Product Responsibility (GRI PR6-PR9)
PR6 Adherence to Laws of Promotion/Advertising
As a global engineering and construction contractor working on complex industrial projects that
range from hundreds of millions to billions of dollars in size, the majority of Fluor’s business
development efforts are based on leveraging our track record of performance, building repeat
business (which stands at over 80 percent currently) and focusing on personal contact with
existing and prospective clients.
While Fluor does very limited advertising and promotion – primarily in industry trade
journals and at conference trade shows – the company ensures all of its marketing
communications endeavors and material undergo a rigorous legal review to meet all applicable
laws and standards as regulated by the U.S. Federal Trade Commission and other nations’
administrative agencies that work to prohibit unfair and deceptive acts or practices in
commerce. Any marketing material produced by Fluor that profiles a client or its project is
submitted to the client for approval and use rights.
PR7 Total Number of Incidents of Non-Compliance
Fluor has not had any incidents of non-compliance with regulations and voluntary codes
concerning marketing communications, including advertising, promotion and sponsorship.
PR8 Breaches of Customer Privacy / Loss of Customer Data
Fluor does not handle confidential “customer” data subject to data privacy/confidentiality
laws, as a part of the ordinary course of its business. Therefore, this reporting category is
not applicable to Fluor.
PR9 Significant Fines for Non-Compliance
Fluor has not had any significant administrative or judicial sanctions or fines levied against
the company during 2008 for failure to comply with laws or regulations concerning the
provision and use of its products and services.
Fluor is a registered service mark of Fluor Corporation. Econamine FG+, Fluor University, Graduates Advancing
to Professionalism, Knowledge OnLine, Managing Safety to Zero, Professional Publications & Presentations
Program, Supplier and Contractor Online Registry E-version, XLR8 and Zero Incidents are service marks of
Fluor Corporation. AMECO is a registered service mark of American Equipment Company. Canstruction is a
registered trademark of Canstruction Inc. The P2S Plant Performance Services logo is a registered service mark
of Plant Performance Services LLC. Powerspan ECO is a registered mark of Powerspan Corp. Verdiem is a
registered trademark of Verdiem Corporation.
Fluor Corporation
6700 Las Colinas Boulevard
Irving, Texas 75039
fluor.com
© 2009 Fluor. All Rights Reserved.
FLUOR is a registered service mark of Fluor Corporation.